India-EU Trade Deal: EV Giants Eye Import vs. Make in India Decision

• A long-pending India-EU Free Trade Agreement (FTA) could be finalized as early as next week, impacting global EV manufacturers' entry strategies in India.
• Industry executives state the FTA will determine if automakers import EVs or commit to manufacturing in India.
• European Commission President Ursula von der Leyen highlighted the 'historic trade agreement' at the World Economic Forum in Davos, envisioning a market of two billion people.
• The deal's outcome will also influence the government's Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), which saw no applicants due to tariff uncertainties.
• A potential reduction in import duties under the FTA to around 15% could lead European EV makers to prioritize import-led entry over immediate manufacturing commitments.

Why It Matters: The India-EU trade deal is crucial for global EV makers, influencing their strategy to import or manufacture in India.