Assuming that was the case, it wouldn't surprise me that might have something to do with the reliability of early CDs across a wide range of temperature conditions and use given vibrations, potholes, etc.
The aftermarket filled the hole quickly and with the full range of quality available. Many people put the early "discman" portable players on the dash and used FM modulators to get that signal to the car radio.
When "factory CD" units started to appear they were multiples of the price of aftermarket units, and initially of such low quality initially that the FM modulators sounded better. The disc handling on some of the early units was ludicrous, too: "just get my CD out please" was common.
* edit: also people used "CD to cassette adapters" which are worth mentioning because of how ingenious they are. Its a headphone plug on one end and a cassette shell on the other, the headphones drive coils that excite the tape player's read head.
Source: installed car audio as a sideline in the late 80s early 90s.
Fortunately ubiquitous smartphones (together with systems like CarPlay) make at least entertainment and nav systems more modular and less locked in to both development lifecycles and operational lifetimes. I never use my car's base-level entertainment system except to plug in my iPhone output and it doesn't have a factory nav system.
The next issue is/will be assistive driving systems which will become more sophisticated and common--perhaps up to even full self-driving under some conditions. We'll probably reach a point where cars that are otherwise perfectly operational will lack what are considered table-stakes (or even legally required) convenience/safety systems in new vehicles.
Even then it could be horrible on bad roads where it doesn't get a chance to skip ahead.
It's also a lot harder to change a CD while you're driving than a tape. And until CD burners were around you couldn't do mixed tapes for road trips on CDs.
