If Japanese-Four have the fallback of cars, lawnmowers, pianos and whatever else they sell these days, the small European manufactures have nothing [except the government subsides

] and they should be worried.
In the short run there is absolutely nothing they can do to their 2T and 4T lines that can match the Varg.
I would also argue that there hasn't been any meaningful technological development since water cooling and EFI, and that was a rocky journey.
If all of them don't have mature prototypes by now, then they must have some cunning business plan that I can't grasp.
As a side note, the recent KTM crisis put in focus what happened to the Jap-4 circa 2008. crisis. They pumped up the production, got financially burned and decided to coast on past glory and 30 year old developments. Kudos to them for achieving it. EVs offered them an exit ramp, but they are obviously not taking it.
Edit:
I meant this strictly about the off-road market.