New Delhi: The Government expects its electric passenger vehicle manufacturing scheme (SPMEPC) to gain traction only after the India–EU Free Trade Agreement (FTA) is finalised, as several global automakers are delaying investments until there is clarity on the trade deal, Parliament was informed on Tuesday.

In a written reply in the Lok Sabha, Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said multiple companies have conveyed that they will take a decision on participating in the scheme once the FTA terms are settled.

Despite the October 21 deadline, no automaker submitted an application. According to the companies, uncertainty surrounding the India–EU negotiations was a major reason for the hold-up.

Manufacturers have also raised concerns over restrictions on rare-earth magnets, which could make it difficult to meet Domestic Value Addition (DVA) requirements. In addition, the stipulated investment thresholds and timelines under the scheme were flagged as demanding.

The Ministry said it has undertaken extensive outreach to boost participation, including consultations during the design stage of the scheme, coordination with Invest India and other ministries, and communication with foreign automakers through Indian embassies. A stakeholder meeting was also recently held to address industry queries after the scheme failed to attract applicants.

Responding to queries on the proposed 15 per cent import duty concession for EVs in return for an investment commitment of ₹4,150 crore, the Government clarified that no revisions to the scheme are currently under consideration.

It added that while it has not officially assessed the impact of the ongoing India–EU trade talks, companies themselves have linked their investment decisions to the outcome of the FTA.

The Ministry also confirmed there is no proposal at present to reopen the application window or modify the terms of the SPMEPC scheme.

IANS