Let $G$ be a group scheme locally finite type and smooth over a base scheme $S$, and assume $S$ is normal and integral.
Then does the set of (geometrical) connected components of a group scheme form a group? or even point of a group scheme over $S$?
If $S=Spec k $ where $k$ is a field, then this is true and we have a theory of $\pi_0(G)$ using etale algebras over a field. I wonder what will happen for the generic case.
I think that you should first ask whether $G^\circ$ even makes sense for a group over a relative base. What is it supposed to mean? Perhaps we should assume that $S$ is connected in which case we have that $G^\circ$ should be the connected component of $G$ containing the image of $e:S\to G$? This is not a very well-behaved notion--it doesn't even respect base change. For example, if you take $G=\mu_p$ over $\mathrm{Spec}(\mathbb{Z}_p)$ then then $G=G^\circ$, $G_{\mathbb{F}_p}=G_{\mathbb{F}_p}^\circ$ but $G_{\mathbb{Q}_p}^\circ$ is trivial!