The thing is that cheap cars don't sell well in the US. Are you buying a Nissan Versa for $18k? Are you willing to drive a manual transmission to save $1,500?

Car companies have tried selling cheaper cars in the US. The Suzuki Dzire is 152" long. A Nissan Versa is 177" long - more than 2 feet longer. Toyota pulled the Yaris from the US market because of poor sales (despite being a well regarded car as a rebadged Mazda2; 171" long).

The Suzuki Dzire is the same length as the smallest Mini Cooper - but without the sports-car appeal. It'll do 0-60 in 12 seconds (14 seconds if you want an automatic). Americans want cars that can do 0-60 in half that time.

Companies have attempted to bring cheaper and smaller vehicles to the US, but Americans won't buy them. Even today, Americans will spend an extra $5,000-10,000 to get an SUV. Americans complain non-stop about gas prices, but proceed to buy vehicles that guzzle gas. The average new car price in the US is over $47,000 - way above what you'd pay for a loaded Toyota Camry. Americans don't want a Suzuki Dzire. They want a pickup truck with all the luxury trimmings.

Part of the cost of US cars is regulatory compliance. As the article notes, this was tested by Global NCAP which tests cars from markets with weak or non-existent regulations. Part of it is going to be the cost of labor or import tariffs. Mexico has lower wages than the US, but part of USMCA/NAFTA trade agreement means that their auto industry wages are a lot closer to US/Canada wages. You aren't going to be able to build them in India and import them to the US without facing tariffs. Part of it is that Americans simply don't want a cheap car.

I totally get where you're coming from because I don't want to spend a lot on a car. I also want an iPhone mini. People continually say that a small phone would be a big hit. Companies have tried and failed. There are so many cheaper options for cars in the US and Americans are spending nearly fifty grand instead. And when you start talking about bringing a Suzuki Dzire up to US regulations, import taxes, distribution costs (and the American wages you need to pay to everyone importing, transporting, and selling your cars here), equipment you want, etc. does that $8,000 vehicle look more like $14,000? And then at that price, do you want something that's 80hp and 0-60 in 14 seconds or would you rather spend up for a Toyota Corolla and get a much larger car with a lot more power and an amazing track record?

Toyota sold the Yaris for $16,000, but people didn't want it. We're talking about a car that Car and Driver gave 9.5/10. It was a really good car at a great price and Americans wouldn't buy it. It's easy to think "I'd love an $8,000 car" when you aren't/can't seriously consider buying it. But maybe we're similar and we'd like more affordable cars and are willing to go with something basic.

But most Americans wouldn't be up in arms for this $8,000 car. They're spending double what many great cars cost and they'd rather moan about the cost of gas than drive something efficient. Hell, hybrids today like the Civic or Prius get better 0-60 times than the sports sedans from my youth - but that doesn't matter. Americans will moan about paying for stuff, but the second that you suggest they buy something efficient or affordable or make any compromise and they'll find any reason not to.