Oooooooooooor, they are just good engineers and shape the car around the drive train. The id3 is spacious like a big car in the footprint of a small car. No engine means you can move the cabin forward, hatchback means extra trunk space and headspace for the second row.

Everyone in Europe is happy about getting more space in a smaller car. And this compact car shape is common here as well.

The car is completely normal and good looking. Limousines and SUV are not the only valid shapes for cars.