This is not true at all. People who buy cars were willing to pay higher prices for cars where they sit higher up and take up more space, even specifically as a defensive maneuver to be safer in the event of a collision.

Obviously, as a business, you have to give customers what they want or else you will go out of business.

The government is, however, very lax on prioritizing the safety of people outside of vehicles (which would mean limiting vehicle size and speed and enforcing harsh penalties for unsafe driving).