What are you talking about? EU is tightening the screw on manufacturers so hard that they are literally panicking right now, as there is literally no way they can meet the regulations as is. Currently there is a requirement that fleet averages have to be below 100g/km for CO2, soon that falls down to 75g/km and then 50g/km - with every car sold above that threshold incurring heavy penalties. We're seeing literally every manufacturer rapidly moving towards hybrids and pure EVs, because there is no way to meet those targets otherwise - VW has completely axed all ICE versions of the Up(and their Skoda and Seat equivalents) going full electric, just to bring their averages down. Even Fiat, whose market was always low-end, cheapest of the cheap vehicles, axed ICE Fiat 500, and has gone full electric. Panda(!!!) is now a hybrid! Even Dacia, which is literally bottom-bin of cars, is introducing a hybrid and potentially a full EV soon.

All of this is only happening because of the pressure from EU regulators.

Unfortunately, heavy cars are allowed higher limits, and that's part of the reason the automakers are pushing heavier cars like hybrid crossover SUVs.