IMHO - They can make it if they have enough cash and a business plan that conserves cash. They seem to be on the right track and I think they could sell 150-200 to begin with. Not a lot but it will never sell like a mainstream model. They seem to understand this which is encouraging.
I think we were an example of a product that no one thought would survice in the US Although we weren't doing the manufacturing of the RE we had 50 dealers in 3 months and close to 100 in 6. Bear in mind at that time it was unquestionably the worst quality bike in North America. We were neck and neck with the Ural in that department. Both are now decent bikes. We got there because did some inexpensive advertising, got the magazines to help us and took the bikes to every dog fight there was in the US. We (me) made a ton of dealer calls and if I could get a dealer on the bike we almost always made the sale. Nevermind that I had to stop outside each city and start them to clear the smoke before I went to the dealership. Our initial buy-in was very modest (often times one - two bikes).
We recognized from day 1 until day last that the RE was a niche bike and as long as we understood that we would be OK. This is true of ALL niche products.
Dealers came aboard knowing full well about the quality issues. We were very
upfront about that, but knew that a great dealer prep would take care of most problems.
Dealers signed up because they were cool, different, inexpensive with a great margin and support in spite of India. The dealers were very loyal. They were also the mom and pop stores where the owners worked every day.
They may not be using a dealer model but IMHO it is key to survival. You don't need 100 but you need passionate dealers. Let them buy one bike and order from there. Lastly be there for the dealer and customer no matter what the issue is.