Auto manufacturers already have stripped-down base models of their entry-level vehicles. Many have commercial versions of their vehicles, especially trucks and vans, that are stripped down.
The stripped down base models don't sell well.
Remember how the internet was clamoring for an iPhone Mini? Whenever there were complaints about modern cell phones, you could find what looked like unanimous agreement that a smaller iPhone would be the golden ticket. Then Apple made an iPhone Mini, and it did not sell well.
The same happens with vehicles. Whenever you find threads complaining about modern vehicles it seems unanimous that modern vehicles have too many things consumers don't want and we'd be better off with simple base models. Yet simple base models do exist already and they don't sell well. Real consumers look at their $20,000 Nissan Versa and realize that spending an extra $1-2K on amenities isn't going to change their monthly payment much.
There is a lot of precedent for this. The Tata Nano was an Indian micro car that was small, low-power, and had bare minimum amenities. It was under $5K USD in inflation-adjusted dollars.
It was discontinued due to low demand because sales declined steadily year over year. Nobody wanted it.