I will assume it's a bit of both. Especially if your car is worth $5, most people will treat it as such. And they will perform maintenance service worth 25 cents.
I was in Bangalore/Bangaluru some years back. I have only seen worse driving in Egypt! (imagine Carmageddon II grade driving)
Regarding the cars, I remember that Tata wanted to bring their car to the world, except for the fact that it was a coffin with wheels [0].
"Rohit Baluja, President of India’s Institute of Road Traffic Education (IRTE) said: “These results show that India would benefit enormously from the introduction of minimum crash safety standards..."
A country that doesn't have "minimum crash safety standards" simply does not care for its citizens, whether they lived or died. Article is from 2014.
[0]: http://www.globalncap.org/tata-nano-offers-zero-star-safety-...
Either way, I am very interested (as I believe we all are) to see how all gas/petrol cars will be replaced by electric in the next 20 years. And with the rise of technology, sensors, self-driving and other functionalities (e.g. cars tracking one-another in real time) we will care 'less' for crash-related safety, if we see that crashes are drastically reduced.
Then we can have lighter and faster cars, with more comfort.
You need regulation --- and more importantly enforcement --- to improve any road safety culture here.