When India determined to make a concerted push to inexperienced the world’s largest two-wheeler market, a slew of electrical scooter startups emerged nearly in a single day. Now, many are falling out of favor for sourcing components from China as a substitute of domestically.

Indeed, the federal government is demanding that six — together with Hero Electric Vehicles Pvt, as soon as India’s prime e-scooter maker — return 5 billion rupees ($60 million) of subsidies for violating localization guidelines. It’s holding again unpaid subsidies from others, turning off a a lot wanted supply of capital within the course of.