The Indian government is considering changes to its Electric Passenger Car Manufacturing Incentive Scheme (SPMEPCI) due to potential impacts from a free trade agreement with the European Union. Automakers have expressed concerns about high investment thresholds and tight timelines, suggesting the current scheme may become less attractive if the India-EU FTA reduces import duties. The scheme, approved in March 2024, has yet to receive any applications, with companies also citing uncertainty around the FTA and supply chain issues for critical components.