[consteval]

I think it's because they are still a relatively niche pick. Ultimately creating a car is very hard (I assume), so they all tend to converge their efforts on the 95%.

And the 95% want an SUV or a Sedan. The 5% in dense cities, even if you successfully target and sell to 100% of them, isn't much revenue. Whereas if you make a crappy sedan and only 10% of the 95% consider it, that's STILL more sales.

So it might make more sense to simply give up those markets, take that money and dump it into the big sellers. Your Accords and F-150s of the world. To further capture more of the biggest market. So that's my guess.