The show, which will run through January 17, is expected to present over 2,000 exhibits to 1.5 million visitors at a site covering over 120,000 square meters.
The much-anticipated $2,500 Tata Nano manufactured by India's Tata Motors has been presented by company Chairman Ratan Tata, who said it would be the most environmentally-friendly car in India, meeting both domestic and European pollution standards with fuel efficiency of 20 kilometers per liter.
The show will also exhibit a new Audi A4, BMW's Mini and DaimlerChrysler's C-class Mercedes, as well as the new FIAT Linea and Honda Accord.
India, the world's second most populous country whose booming car businesses imported $3.3 billion worth of car parts last year, plans to bring the auto industry's economic share to 10% of GDP compared to current 5%, according to the Confederation of Indian Industry.