Yeah, gas prices are having less and less influence in what cars people buy. The overlap between [people squeezed by gas prices] and [people who demand cars from automakers] is dwindling. Fun fact, only about 26% of cars sales are new cars. The vast majority of drivers have no say in what is made.
It is possible to make cheaper cars, but they aren't competitive against nicer used cars. Back when cars didn't last very long it was viable to sell a car with basic amenities, like keyed locks, roll up windows, a single exterior mirror, no stereo, no AC, etc. But now, few are going to pay the prices that would demand when a used car for around the same price has all of those features. This pressure extends to cars of any drivetrain type.
It is possible to make cheaper cars, but they aren't competitive against nicer used cars. Back when cars didn't last very long it was viable to sell a car with basic amenities, like keyed locks, roll up windows, a single exterior mirror, no stereo, no AC, etc. But now, few are going to pay the prices that would demand when a used car for around the same price has all of those features. This pressure extends to cars of any drivetrain type.