Yes..The pink wire coming from the Pioneer harness is the connection spot to tap into your VSS wire in the car, however, the location and color of the VSS wire for everyone's car is different. I have a '98 Toyota 4-Runner, and mine was a green/orange wire located behind my glovebox way up underneath the dashboard on a 22-pin connector. Not the easiest wire to get to and it took several calls to Crutchfield Tech Support to help me find it. To boot, it was snake-bundled in electrical tape inside plastic flex tubing, so had to do some work just to free up enough of the bundle to work with the VSS wire.
The VSS wire is normally part of a gang bundle pin connector plugged into the main computer of the car. It sends a voltage pulse back to the instruments (Speedometer) and/or ABS controllers in your vehicle and translates the rotation speed of your tires. In the case of the "Z" and "X" head units with Navigation, it used to be that this wire connection for the head unit was not a necessity, but with the newer NAV units from Pioneer, that has changed. If you don't connect it, you will receive some error outputs from the head unit on the NAV module, and it will not translate proper speed outputs for arrival times or compensate for NAV movement if you lose satellite signal (Bridge/Tunnel).
In my case, once the wire was finally located, the obvious problem at that point was that I clearly couldn't connect the the pink wire to it because its only 6" long. I opted to do the bypass for the DVD video so I cut the green parking break wire since I didn't need all of it. I took the spare green wire and crimped it to the short pink wire...ran the wire to where I needed it and used the "red" tap connector already on the green wire to connect it to the speed sensor wire.
**Note - Once I could get a good grip on the green/orange VSS Wire, I CAREFULLY used a blade to remove some of the wire sheath on the VSS wire so it would make a good clean tap.
What I recommend you do is contact your Dealer to help you find the location of the VSS wire in your car so you know what your doing before you do anything. They have schematics and can give you the exact location and color. At that point, you can make your own decisions as to whether or not you wanna try and attempt it yourself or pay someone to make the connection for you. You also may be faced with the fact that the "pink" wire is too short to reach and you will need some spare low-voltage wire to extend the pink wire itself. In the beginning, I actually considered paying an installer to make this connection, but when I knew where I had to go and if I had the ability, it wasn't a hard connection to make in the end.
The pink wire for me did not attach to the factory harness for my truck, but is a direct connection to the VSS wire. Good luck!!
Peace ~ HFoM