The $25k car is going extinct?

The more interesting question is why these cars disappeared in the US. And while many of the factors discussed here are true for both EU and US (inflation, interest rates, manufacturer profit margins etc) I am surprised no one mentioned the 'SUV loophole' of US regulations that effectively boosted the SUVs (off-road vehicles are classified as non-passenger automobiles with everything that entails, notably much less stringent emission standards) and made the small cars unprofitable to make in comparison.

This has become the irrelevant part because "does it have an electric motor in the powertrain" has become more important to fuel economy than vehicle size. There are hybrid SUVs that get better MPG than non-hybrid sedans, to say nothing of the full electric ones.

Which is another reason the average price is increasing. Hybrids have a lower TCO even though they have a higher initial purchase price. People who can do the math realize that paying more up front for a hybrid or full electric is paying less long-term. But then the market for lower priced new cars declines, because the people who can afford a new car can afford to pay a little extra for long-term savings and most of the people who can't afford to do that were buying used to begin with.

Can they? In long term maintainability decides. And hybrids usually has it with maintainability pretty bad. Large area of potential breaking, expansive spare parts usually with strong vendor-lock.

Hybrids are very costly in maintainability, even if you are privileged elite that buys hybrid and in two years resell it and buy brand new car, even then hybrids looses comparatively big percent of its original cost.

So people that buys hybrids, usually CAN NOT do the math.