The successful completion of the Free Trade Agreement (FTA) between India and the European Union (EU) offers substantial future growth prospects for domestic manufacturers of two-wheeled vehicles (2W). Industry experts suggest that the FTA will provide a significant chance for Indian firms to enhance their presence in the EU by lowering trade barriers and increasing their competitiveness in the global market. As stated by Hero MotoCorp’s CEO, Mr Harshavardhan Chitale, this presents a chance to build a robust business partnership, allowing Indian-made products to thrive and become increasingly embedded in worldwide supply chains. Chairman of TVS Motor Company, Mr Sudarshan Venu, highlighted that the FTA will transform business operations and offer Indian manufacturers fresh opportunities to innovate and compete internationally. An agreement has been made to remove the current 10% tariff on Indian cars sent to the EU. This presents a chance to build a significant competitive edge for Royal Enfield, which currently derives 26% of its overall exports from the EMEA (Europe, the Middle East and Africa) region. Currently, exports from India to the EU represent just 1% of total Indian 2W exports, but significant growth opportunities exist in this sector with impending new tariff frameworks. The existing volume of goods trade between India and the EU stands at Rs. 11.5 trillion (US$136.54 billion) for FY 2024-25, establishing a solid economic base for this growth. The pact also encompasses regulatory collaboration, research and development, and innovation, which will promote the greater adoption of electric vehicles (EVs) in the EU and enhance export growth while bolstering India’s status as a global trading centre.