In Japan there is something similar they have a class of cars called kei car and it is not as small but close and have limited engine size like under liter for combustion variant and some other rules that they have to comply and those are less taxed and much cheaper but what suprised me at least in cities i visited last year still majority of the cars there was the regular ones
I have looked it up on wiki and it looks amazing i would maybe own a car myself if we have something similar here in europe or maybe not because i live in old and small city and here you can go almost anywhere by walking https://en.m.wikipedia.org/wiki/Kei_car