The smart is now a 4 meters SUV

Is it? I haven't heard about it, I've seen some weird concept picture, but the Fortwo as currently being manufactured is still the same 2.6m long car as it was in 2014 as per Wikipedia.

The Volkswagen up (small 4 person car) is out of production and they’re selling nothing under 4 meters Skoda, after retiring the citigo, has the Fabia that’s relatively small (almost 4 meters) and the rest are huge

They are the same company. The Skoda Citigo and the Seat Mii are both just rebadged Volkswagen Up cars.

The fiat panda (another small 4 person car) is in the process of being redesigned and the mockups look like a huge range rover SUV

Those mockups are actually the redesign of the Panda Cross, which was an SUV-ish thing they introduced in 2014. Fiat still makes the subcompact 500, having recently made an electric version.

Some EU automakers are doing weird stuff, but if you look at the electric car market for example, at lest where I live, locally produced electric kei trucks actually outsold Tesla at some point.