Compacts, subcompacts, and microcompacts are very popular in Europe. Is this because Europe has fewer and less restrictive standards for fuel economy, emissions, and safety? I am not an automotive policy expert, but I feel like Europe tends to regulate more than the US does.
One factor to take into account is that streets and roads are narrower (or at least feels narrower). I would be very uncomfortable driving those huge SUV where I live.
Yeah my expat friend owns a midsized (for the US) SUV in Spain, and she finds it incredibly difficult to use in the city she lives in due to the narrow streets + sidewalk cafes.
Regulations are not just a more/less choice. They can also be better or worse.
This usually comes up when arguing about about FDA, which is uniquely bad at its job. When I try to point that out, people come out of the woodwork and argue as if I'm a nutcase libertarian who wants to abolish all regulations. No, there are countries with drug regulations that are generally tighter, and also the population has had access to UVA-blocking sunscreen for a decade.
The regulations that matter here are terribly written regulations that are more lax if your vehicle is bigger. EU has more regulations, but wouldn't ever make that mistake.
FDA Delenda Est, sure. But I'm still glad that seatbelts and frame strength standards aren't optional for auto manufacturers. Maybe we just need to regulate regulatory capture; have penalties for it that actually hurt the pocketbooks of the market juggernauts who try it.