The original VW bug in the sixties ran 45 to 60 HP. You probably think no one bought them either.
That was before anybody's engine could get 1.25 HP per cubic inch, or more. This looks like it has considerably less power than even a Prius.
I haven't done the marketing research, and I'm sure VW has. If they think there is a market for that engine and drive train, more power to them. I guess I'm not in their target demographic.
In the Sixties, maybe. IIRC (not gonna look it up), it was 36hp in the late Fifties and may have been something like 25hp originally.
I remember when VW Beetles had 36 HP, and a top speed of 72 MPH.