On the moon f your car weighs 1700kgs then it has a mass of 10,200 kgs, so it has to find enough traction to pull 8,500kgs on top of the weght (this is not a force of 8500kgs, it is just an additional mass it has to tow)
Do you understand rolling resistance? I just explained it here a few days ago. This is the force needed to keep a wheeled vehicle going at a constant speed on a level surface. It is independent of speed but varies linearly with weight, so if the vehicle is transported to the moon and operated on a comparable surface the rolling resistance is only 1/6 of that on earth. That means only 1/6 as much motor power is needed to keep the vehicle moving at a constant speed.
The only force that doesn't vary with gravity is that needed to
accelerate the vehicle, because inertial acceleration is the one place where mass really matters. Here you
are limited by the fact that the static friction of the wheels, i.e., the maximum torque they can take without slipping, is also reduced to 1/6 of its earth value. So you simply can't accelerate or brake as rapidly on the moon as you can on earth, at least if you don't want the tires to slip. But kinetic friction, while often lower than static friction, isn't
always so, and if you don't care if the wheels slip a little and/or if the coefficient of kinetic friction is close to that of static friction, this isn't a serious problem.
Besides, drivers usually spend far more time cruising than accelerating. Since the LRV's top speed on the moon for a given motor power is at least 6x that on the earth, it simply means the astronauts couldn't do much drag racing on the moon. It hardly means they couldn't drive around prospecting.
You complained that 1 hp was "obviously" insufficient for the LRV. But the LRV operated in a vacuum where aerodynamic drag is totally absent, in a 1/6 g gravity field where rolling resistance is only 1/6 of its earth value, and is limited in peak acceleration because of the decrease in maximum allowable traction force, at least if you care about wheel slippage. In other words, the LRV didn't need a bigger motor, and it probably couldn't have used one anyway.