NEW DELHI—When Ford Motor Co.Early Misstep built its first factory in India in the mid-1990s, U.S. carmakers believed they were buying into a boom—the next China.
The economy had been liberalised in 1991, the government was welcoming investors, and the middle class was expected to fuel a consumption frenzy. Rising disposable income would help foreign carmakers to a market share of as much as 10 percent, forecasters said.
