In a lot parts of the world, you cannot sell anything bigger, or more expensive than a Japanese kei car.

Most of South Asia, and Africa drives Suzuki Altos, and Suzuki SX4s are considered there as big cars.

It's definitely, definitely possible to make small, cheap cars on batteries. In fact, easier than bigger ones as power to weight, and driving range scale non-linearly with the car size.

Big, heavy cars pay big premiums for not being able to use stamped parts in suspension for example. Small cars use stamped parts for almost everything.

Heavier cars almost invariably have to use more sophisticated suspension designs, with more parts to provide an equal level of comfort to lighter cars of the same class.

The amount of energy you lose in rolling resistance also varies non-linearly. You often can get an increase in driving efficiency if you have softer tires when you drive on less than idea roads. Etc, etc, etc