The e-motor is often “overpowered” in EVs (compared to ICEs) to make regenerative braking efficient, i.e. capture meaningful energy from braking.

And because almost everyone is a sucker for the "Stomp on the pedal and it goes fast" marketing strategy and demonstration.

That's why a modern Camry makes almost 200 HP

It's also just a lot easier and cheaper to make an electric motor "overpowered" by 25% or even 50+% than an internal combustion engine.