Your numbers are just plain wrong.
Here are the facts from census.gov: " In 1900, the Census Bureau reported that manufacturers produced 5,000 motor vehicles and there were 8,000 registered vehicles in the United States. In 1908, the year Henry Ford began producing the Model T, manufacturers produced 65,000 motor vehicles and There were 197,500 registered motor vehicles on American roads."
So… in the glorious days of deflation, from the beginning of the US car market, through 1899 the total number of cars sold was all of 3,000. Then, from 1900 through 1908 there were an additional 197,200 added to our roads. So, what was the rate of inflation during those periods?
Guess what? During the period of 1893, the start of the US car market, until 1900 the dollar had an average deflation rate of -1.34% per year, producing a cumulative price change of -7.78%. But during the time the car market took off, from 1900 until Henry Ford introduced the Model T, the dollar had an average inflation rate of 1.14% per year between 1900 and 1908, producing a cumulative price increase of 9.52%.
So much for the inflation is bad for the economy theory.