Only because they have not got wealth and think that is what wealthy people would wear and drive. I would guess 90% of the cars on the road are either company cars or have serious debt owing on them and may are struggling to pay them off. I know the Indians in SA buy expensive cars and live in what would be considered standard housing because they like to feel or give the impression they are wealthy. Myself I would rather have a nice house and a normal car because the property is an investment and a car depreciates in value.
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This is also true, it's mostly living the assumption of what they believe a wealthy person would do. On the contrary, some wealthy contented wouldn't.
Over here, people would rather have you believe they're rich, because they feel ashamed to be seen as "struggling"
I haven't seen how foreign Indians live, their financial and all. However it's just saddening how some people view wealth as the things they need to wear, eat or even drive and prefer to be in debt.