So while you protect the local industry, your population is forced to overpay for inferior cars. I think we agree on that fact.

You're saying that that is more than compensated for by the later emergence of a competitive car industry, and the various wealth effects it spreads across the nation over many following decades.

I just don't think there is empirical support for that. I'm sure you can cherry pick examples in hindsight, but if you do an honest accounting of these attempts, including those that failed I don't think it looks good.

Except for the favored industry of course, who makes a nice living during the protected era.