Pedig can have two different meanings depending on its position. In this sentence it's practically a contrasting és, interchangeable with meg. In this case it follows the word/phrase it refers to.
If it's in the first position of the second clause, it means even though: Megettem az ebédemet, pedig nem volt finom. -- I ate my lunch, even though it didn't taste good.
Since then, mizinamo answered a similar question so you may read that as well.
I don't want to sound too pretentious, just wanna make sure you get the "spirit" of language learning... Languages don't feel pressurized to make the same distinctions as other languages. "Ezek autók" is a sentence where nothing signifies "are", yet the conveyed meaning is "These are cars". One may say the "are" part is implied.
Incidentally, it's not even ambiguous with "these cars" since "these cars" is expressed as "ezek az autók" (in the nominative, of course). Again, nothing signifies "az" in the English version, the grammar happens to differ.