This limiting is intended to protect the motor, battery and electronics primarily from overheating and wear. Under full load, an electric motor draws several hundred amps – this is no problem for a short time, but over the long term the entire system suffers. Manufacturers often only specify the (temporary) maximum power.
For example, Cupra states the following for the Born:
Continuous power is the highest power over a period of 30 minutes in kW. Maximum power (highest power of the electric motor) indicates how much power (kilowatts) can be provided temporarily.
Edit: this was about the Terramar, where it says: The available power (kW) and acceleration of the vehicle depend on the battery’s charge status and temperature.