Cars and transportation more broadly is under heavy regulation and political control. Part of it for obviously good reason. The rest of it for not so good reason.
There should be innovation in vehicle form and size now that electric batteries and motors have become cheap and abundant; cars such as the depicted would already be whizzing around town if we were free to buy them but of course we are not.
Perhaps innovation will happen outside the west where the politics of this is less locked down by special interests and overall conservatism.