Supposedly it's more about AM radio being swamped by the RF interference from the car electricsI once tried out one of those little BMW electric cars (i3, maybe. The one that looks like it was designed by Ikea), and it didn't have AM radio for that very reason.
It's kind of a big oversight for a car sold in the United States, where the top ten rated radio stations in most large cities includes a number of AM stations.
Currently in New York, the #5 and #12 stations are AM (WINS and WCBS): https://ratings.radio-online.com/cgi-bin/rol.exe/arb001
In Los Angeles, the #2 and #12 stations are AM (KFI and KNX): https://ratings.radio-online.com/content/arb003
In Chicago, the #1 and #3 stations are AM (WBBM and WGN): https://www.robertfeder.com/2020/06/09/chicago-radio-ratings...
Dropping AM radio isn't something that's really happening in civilized countries. For example, in Australia, where the #1 and #8 stations in Melbourne are on AM (3AW, SEN). I wasn't able to find any ratings for radio stations in Tokyo, but when I scan the dial there, I find a good number of AM stations on the air.