Because as a EU citizen I want to know for certain that something that is on the market here is not dangerous to drive around.
The same as you can trust that the carrots sold at a local supermarket do not contain arsenic - there are regulations against that. But according to your logic, it would be better if there were no regulations, surely a producer of arsenic-containing carrots will naturally go out of market after sufficient number of people die, because no one will buy their carrots anymore,right?
I believe that a car with a cabin that folds like origami in a crash should not be allowed to be sold in the EU(or in fact, anywhere).