Not really. VW India sells between 3000 to 4000 vehicles per month spread across various models and that has been the trend over the past 2 years. I found this slightly dated statistic but still worth a look. Its not high sales driving sensible executives to drop prices in India, its mostly the competition, of which India has a lot. Maruti, Hyundai and Honda do command a lot of sales and can afford to drop price margins but the rest of the market has to follow suit because even a small piece of the pie is better than none. In Pakistan, we largely have 3 pieces of the pie which can be shared by others too and this pie will only grow larger in the next few years.
Pakistan is the 6th largest country by population and the market can accommodate not one but more incoming manufacturers. If Pakistan is comparatively less developed and has less %age of rich people, the sheer size of the market can make for a few viable entrants in the automobile sector. If only regulations encouraged investment and corruption didn't drive top manufacturers (who are used to much more transparent markets), we would see a totally different car market. Fanboys wouldn't be showing off their used JDM imports proudly while dissing local cars either. Again, if only ....
