India’s electric-vehicle story is becoming harder to separate from China’s industrial power.

India is preparing to approve a $370 million manufacturing investment by Horse Powertrain Ltd., marking one of the country's most significant approvals involving Chinese-linked automotive capital in recent years.

India’s electric two-wheeler market is expanding far beyond the headline race between Ola Electric, TVS, Bajaj and Ather. A quieter surge is taking place in low-speed scooters, where Chinese-made kits are helping push sales into million-unit territory.

India’s largest carmakers are moving to loosen their reliance on Chinese lithium-ion batteries, as Beijing’s tighter grip on critical materials and export incentives exposes a strategic weakness in one of the world’s most closely watched electric-vehicle markets.