An automotive exhibition of new cars and trucks has opened in the Indian capital, Delhi, amid high expectations of a market boom.

Ever since 1991, when India began opening its economy to foreign investment and allowing more liberal trade, there have been expectations that the market for personal automobiles would boom.

But that has not really happened.

One company, a joint venture between Suzuki of Japan and the Indian Government, controls most of the market.

Many new models are on display

The many other international firms that have entered the fray in recent years still are selling just relatively tiny numbers of cars.

Demand picked up dramatically last year, and now there is renewed hope that the high expectations of the past may begin to be realised.

New models

India's commerce minister, Murasoli Maran, from Madras, a major car producing city in South India, told delegates that the number of vehicles sold in India this year could pass half a million.

Expectations that demand may finally pick up

He described the industry as one of the most vibrant sectors of the economy.

But the many new entrants such as Ford, Hyundai of South Korea or most recently, Toyota, must be wondering if they will ever start selling enough vehicles to justify what must be huge investments in plants and employees.

At this year's car show, Toyota has unveiled its first consumer vehicle for the Indian market.

They have priced it relatively low and are hoping to sell 20,000 of the sport utility vehicles a year to begin with, something other joint ventures, except Suzuki, have never come close to.

Mr Maran also assured manufacturers that the government's intention to allow more liberal used car imports did not mean the country would become a dumping ground for cheap junk that might damage their markets.

And he admitted that the country's horrible road network was a major impediment to the car industry and promised improvements.