The cars in The Netherlands are nearly all small cars with small engines and manual transmission. Cars are taxed, taxed and taxed. Fuel efficient cars have lower taxes, smaller cars have lower taxes, lighter cars have lower taxes. And finding a parking space is a constant battle. The apartment building I live in has no parking spaces. There is parking building next door but that costs money, and The Dutch don't believe in spending money unnecessarily.
In Iceland most cars are medium sized with large engines and automatic transmission. Even when faced with the highest fuel prices in the history of the country The Icelanders want power and comfort.