The crazy thing is, outside of the US, small and cheap vehicles are the norm. Both ICE and EV.
I'm still convinced that if a major automaker brought a line like they have in the likes of China or France to the US market, they'd be hugely popular. That people WANT cheap vehicles and are willing to compromise on size to get them -- that the reason vehicles are getting pushed bigger is because that compromise is not an option. I think there's massive untapped demand for things like mini city cars and kei trucks. But the profit margins would be lower for the manufacturer, so even if it was still a profitable business model the US automakers don't do it and exert their influence in various ugly ways to prevent it from happening (e.g., all the states that have used administrative levers to ban registration of imported keis based on total nonsense safety arguments).