This research emphasizes the market response to any governmental intervention in terms of market total sales change, balance between CKD and CBU sales portions in the market, future of CKD business and its supporting industries. This research will also propose possible integrated policies –set of laws– that could be the way to stabilize the automotive market and develop the related industries in this important and potential cluster. After having the simulation model ready, several runs are conducted for validity check and scenarios of different opinions are examined. Output of these runs are subjected to comparative analysis to induce an optimum scenario, defining recommended values for governmentally controlled variables, and strategies behind these recommendations. In addition, the research defines the market segments which have the most potential for growth if encouraged, and consider minimization of the potential harm that can affect the local industry, and therefore give it time to achieve technology and capital build up to be able to start competing.