A post I made in another thread pretty much shows why we are lagging behind.
things are not looking good as local auto mafia is trying its best to influence government to block entry of new assemblers. A total of 3 major companies have expressed interest in investing in Pakistan: Volkswagen, General Motors, and Nissan-Renault and have requested government to liberalize the new entrant policy. They are in talks with government for a long period of time but so far government is favoring existing assemblers at the cost of consumers. Even the Japanese Embassy has approached all the way to PM level to protect its monopoly and continue exploiting consumers
Furthermore, local firms, especially Paksuzuki have easily convinced the government to withdraw proposal of "Mandatory Model Change" after 10 years. Safety Standards (mandatory airbags, abs, immobilizer) are also not being implemented to favor the big 3 at the cost of the consumers. Corruption and Incompetence by government in this sector is at an all time high..
A Senior public offical confirmed to media "that the existing assemblers always block new investment in the country"
How to tackle challenges: New auto policy ?€“ no change on horizon - The Express Tribune
Auto policy draft - Newspaper - DAWN.COM
Auto policy: Asif, Zubair irked by excessive regulation? | Business Recorder