Small car competition is heating up at the tenth annual Delhi Auto Expo, as three major automakers are premiering new subcompacts.

Toyota and Honda are both planning to debut new small cars specifically for India and other emerging automotive markets, while Maruti Suzuki is going to unveil a homegrown sub-$8500 minivan. Called the Eeco, it comes with a 1.2L engine and seating for seven — and is proof of automakers’ hopes for the Indian market.

“The new car represents the growing expertise of our engineers to conceive, design and produce vehicles here,” Maruti Suzuki executive I.V. Rao told Cartradeindia.com. “This is also in line with parent Suzuki Corp’s vision of turning India into a global hub for small car research and development.”

The theme of India as a breeding ground for subcompacts is apparent in press releases and statements. With car sales down in nearly every other country, automakers are after Indian consumers like New Yorkers hunting down iPhones.

Toyota is taking aim at Maruti’s best-selling Swift sedan (shown above) with a long-awaited concept that, until recently, was known as the Entry Family Car. Now christened the Etios (meaning “the origin of”), the car will be offered in hatchback and sedan variants with a choice of 1.3L diesel or 1.2L gasoline engines. It will be built in India and on sale by the end of 2010.

Not to be outdone, Honda announced the “New Small Concept,” developed especially for the Indian market. Ford is counting on the Figo, unveiled in September (shown above), to boost its presence in India. Built in Chennai, the car “shows how serious we are about India,” according to Ford CEO Alan Mulally.

Just how much attention are Indian consumers getting from automakers? Consider that the exhibition space at the Pragati Maidan convention center has been booked solid for months now, according to the Hindu Business Line. That’s in sharp contrast to what Dan Neil dubbed the Los Angeles International Carpet Show, where floorspace outnumbered vehicles.

If we were in the business of selling cars, we’d want to be selling them in India.

Photo: Ford