@nick
Well as you said that you never compared the Two. I think if you don't compare the two then you're not doing anything worthy. Prices of Cars in India are meaningless for Pakistanis unless or until they are compared with prices of cars in Pakistan.
Now the point I wanted to divert your attention to (assuming that you sensibly put up comparison for those who are interested :)...like me) was the way to compare prices of cars in Indian and Pakistan.
While comparing prices I'd request you to convert INR into PKR as that would be meaningful to us. Otherwise we can go this way:
In USA Maybach62: Price Range: $ 3.5lac to $ 4lac (i don't know exact price)
Holy Cow in Pakistan you can get Mehran in price range of PKR 3.5lac to PKR 4lac.
So while comparing or giving decision like "Cars in Pakistan are overpriced" you've got to take care of Currency difference.
Got my point? 
Now comparing Spark of India with other cars in India then its something different. Indian Companies do enjoy economies of scale. They have greater demand. They have a tough competition. The local industry is flourished. These things are not here. Only demand is increasing. The main reason for cars being cheaper in India than Pakistan is the deletion level. I read an analyst's report on auto sector and he said that India's deletion level is around 90%-95% (plz correct the figures if ain't correct). This actually helps nourishing local industry and makes products more cheaper.
The bottom line is that Yes, India is able to produce cheaper cars than Pakistan by enjoying lots of its achievements but comparison shouldn't be made like Spark there=3.89lac INR...in Pak its 5.50lac PKR.
It gives just a meaningless and false comparison
@talhamehmood85
nice bro. The production costs are higher. The steel prices, oil prices and for jap companies the fluctuation in the ex-rate of yen is actually creating trouble. More than that the transfer pricing issue that i just mentioned is looting more money than anything. If the technology is tranfered here and high deletion level is achieved then believe me prices will go down significantly.
@ateekt
I gotte be here. 
