That will clearly affect buying decisions and encourage sales of the known reliable old faithful design that can be repaired by the local village mechanic using 2nd hand parts that are abundant everywhere.
This was a considerable factor for the demise of the 500, in my opinion. It sold VERY poorly in India in its UCE configuration, whereas, when available previously in IC varieties, it sold much better. Never at parity with the 350s, but at least within an order of magnitude.
RE had made the decision to ONLY offer the 500s with EFI, open loop systems for domestic bikes and with an 02 sensor for exports, whereas the 350s had carburetors. This not only burdened the 500 models with considerable more cost, those Kiehin ECUs and the hired expertise to implement them, fuel pumps, Bosch injectors, and fancy newfangled sensors, but it also made them considerably unpopular with the home-spun mechanics that had serviced these machines for generations. There was considerable pushback, the evidence of this still exists in old internet posts.
An unpopular, expensive alternative, with resultant awful sales figures, were the nails in the coffin, much more so than any inability to make the machines compliant with BS-V emissions regulations, in my opinion. The were too fancy for the domestic market, but didn't have enough performance for a high priced western export market. Even the 650s, which incidentally, also sell VERY poorly in India, are considered marginal performers in the West.