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This still leaved the gap for small cars you can cram 4 people inside + some luggage unfilled. Also, are manufacturers taking L7e vehicles seriously, or are they styling them like toys still? Early EVs suffered form car companies deliberately making them look non-serious.

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I think the Renault Twizy is a great example where it was made too much of a toy - and I pretty much stopped following the developments in the L7e space with that. But now a lot of Chinese companies seem to sell vehicles that are actually useful - mostly in the last-mile delivery space.

This one convinced me that you can build useful vehicles: https://www.ari-motors.com

Essentially, L7e could perhaps be the Kei car of Europe?

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