Rome may be a bit of a bad example, as although it’s the capital of Italy, it isn’t that wealthy a city. However even on trips to other parts of the country (I was there for over a year) it appeared to be the same situation.

There’s definitely an advantage to having a small car in Italy (I had a Prius and it felt too big), but most people had cars that would even feel old here (where most people have 2nd or 3rd hand cars).