Venturing out in a crossfire knowingly...lol
Anyways, here are my two cents on the subject:
Perception is everything, sadly the guys @ Adam Motors never realized that Chinese products, though cheap, are preceived to be bad in quality. You might be able to sell a chinese shirt, even a chinese washing machine, but a chinese car in pPkistan, best of luck.
Another factor that the buyer in Pakistan are now aware, and buying a car for most, is equal to buying luxury and respect. The other factor which plays in mind is, usually people over here tend to keep cars for shorter periods of time and change for newer models. This brings in the issue of re-sale. Would u rather buy a car that will sell for Rs. 500K after three years or would u rather buy a car which you will advertise/re-advertise and sell for Rs. 100K, after having bought it for Rs. 500K, and only if you find a willing buyer.
Regarding the fact that companies selling cars are not Pakistani, we should remember that these people have invested in Pakistan and are employing Pakistanis.
Regarding high prices, quality and comparison to India, I have to emphasize that our automobile industry is protected and cannot even think of competeing with either Chine or India. We produce a maximum of 300K cars a year, they're producing more cars in a month, thus the massive investment there by manufacturers. Economies of scale are prevalent there too, so ofcourse better prices and better quality. Sadly, unless the government takes steps to counter the looming threat of 2010 - Trade Barriers have to be removed - our automobile industry is going to be in a pretty mess, since we will be able to buy cars from China (buying from India might not be allowed, politically speaking), Japan etc, at prices lower than what our manufacturers are offering. But ofcourse, all of this will result in massive outflow of Foreign Exchange, something which we're limiting through our local hondas and toyotas.
To develop our own car at this stage, would be pretty difficult considering the way things are going and that would take a lot of protection'ism, something that globalization will not allow. You have to remember that the Ambassador is not Indian from the outset, but they had a closed economy, initially you could only buy an Ambassador or a TATA Truck. Then came Suzuki and even Bollywood stars have Suzuki Esteem.
Sadly, there are no conclusions, rainbows or silver linings. All we can do is wait for 2010, when the walls come down.