Cars require hundreds to thousands of microchips these days. Airbags require sensors and circuits. Emission systems require expensive sensors, and engines require complex electronic and mechanical real-time tuning systems to constantly monitor and adjust fuel usage to limit emissions and meet minimum mpg requirements. Automatic transmissions are now extremely complex, including 8 to 10 gears or using CVT to achieve the best fuel efficiency. Backup cameras need a monitor, and it costs more than $200. And now that you
must put a monitor in the car, you can't just have it be useless except for a backup camera, so now you have to add a bunch of software features. Meeting emissions requirements means making cars much lighter. This means more expensive composites and materials. This means increased manufacturing and engineering costs to meet structural requirements while designing cars with the least amount of material.
I don't think you realize how simple cars used to be. Engines were extremely simple and purely mechanical, essentially 50 year old technology. Transmissions were simpler, either manual transmissions or ATS with only a handful of gears. Engines and cars were made entirely of cheap steel. You had no expensive screens, no expensive sensors or electronics. You had no expensive research on structural design and materials science. You had no expensive emissions systems. You could fix nearly everything in the car with hand tools.
