I don't think it would sell against the Smart - even a Smart is probably more suited to US conditions than the Nano.
If it was sold cheap enough to actually find buyers there is little or no profit to give decent customer service, spares backup, repairs, warranty etc. which means anyone who does buy won't come back again - just like what happened to Yugo.
Its clever though - some more linkys:
Very interesting owners review, includes lots of pictures and experiences - worth a read...
List of owners faults.
The kind of roads it has to deal with :
No Nano was harmed in the making of this picture.
The competition has heated up though - Maruti (local Suzuki remakers) have remodelled this :
into this :
