I don't know about that. Only one person I know wants a small car (my mother, who's retired.). Mostly because they're not just driving one person to work and back with their car. And if we're worried about only being available for the super rich, I think owning 2 or 3 vehicles targeted to each different task is even more unlikely.
Part of this is surely regulations / design, but my cousin has 2 kids, and those car seats are bigger than I am, which means he needs large SUV or Minivan to actually fit the car seats in the back seat. Then he says he needs lots of room in the cargo area for "kid stuff" (I kind of doubt that, but it is filled every time I visit with something). Finally, he needs enough space and legroom to comfortable drive and have a passenger ride up front and he's not a small person.
For me, it's 2 things, cargo space for shopping, and cargo and passenger space for road trips. I've outgrown my Outback for road trips, so I'm seriously considering a second vehicle in a minivan to hold 3-5 adults and their suitcases for a couple week trip plus my camera gear. Last time I had myself and 2 other adults and we couldn't fit anything else in the cargo space or back seat, and the person in the back was kind of squished.
For others it's even more cargo space - want to move a large filing cabinet or bookcase? Want to go buy lumber? Want to tow a trailer with a car or tractor or several 4 wheelers on it? Yea, we have pick up trucks for that.
The problem with all of this is I'm paying on 3 vehicles in maintenance and insurance, forget about buying them. For the secondary vehicles I often buy used to save money, but that's still $16k + recently for something 10 years old!
So a lower priced option is badly needed, but a cheap car that doesn't do what people want is simply a waste of money for them. If there really was a market for tiny cars that only moved one person around - we've had those available for decades and they're more of a curiosity than a market segment.
I don't know how I feel about this. I think to some extent, it's again trying to do the wrong thing. Instead of banning phones, like for years they banned calculators, perhaps they should be teaching skills around time management, how to configure the phones to be less disruptive for set periods or all the time, and the like. It's not like people at work don't have phones in most work environments. It's not like most people lock up their phones when they're at home.
Instead of pretending that we can "go back in time" to teach kids, we should look to teaching skills kids will obviously need. I remember being taught to balance a check book in 1997 or so, roughly a year or two before I never used a check in daily life, and the less than one time a year I needed one, I didn't really have to do any "balancing" cause I can do a single subtraction for the day or 3 till it was updated in my online bank account anyway.
Teaching kids stuff sans smartphones is like teaching kids sans books, the schools just haven't accepted it yet. And to all those who are like - well, what if your smartphone dies, or is lost, etc. Well, what if your car dies? You do the same thing, you have a backup plan, but that plan isn't to go back to walking or horses.
The other argument I can foresee is "kids won't learn anything". This has always been a problem for some kids, and phones aren't the cause. For everyone else, you get out of school what you put into it. Maybe some kids can be shown by teachers why learning is important and they'll be self motivated - in which case phones are a net good. The solution to learning isn't to torture kids who don't see any point in it. It's like you never screwed around or just slept in class... You don't need a phone to not learn stuff is all I'm saying.
The important thing is to teach people how to teach themselves. At work I'm always asked to figure stuff out. Nothing I do today has much if anything to do with what I learned in high school or college. No one asks me to do calculus, or the details of the war of 1812. I'm solving problems using my phone or computer and the internet. As soon as you're in a job, all these sorts of restrictions tend to go away in the vast majority of cases.