Pakistan's automobile industry still remains an infant industry despite over half a century of it's existence.
Continuous localization efforts have halted the growth of industry in Pakistan and dissociated it from the global value chain as well.
Cars in Pakistan are low quality, high priced and lack features compared to vehicles available globally. Furthermore, the vehicles introduced in Pakistan are mostly a generation behind the equivalent cars available elsewhere.
High duties to protect local firms against foreign competition has not allowed the market to develop. Localisation and protectionism has killed consumer welfare and coupled with the booking system allowed the emergence of a black market premium called ON Money in Pakistan automobile industry.
Pakistan must kill off protection for car industry and push firms to compete and export. Without becoming part of global value chain, the automobile industry will continue to remain an infant that refuses to grow.
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