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Automobile Procurement on GeM Portal

Automobile procurement through the Government e-Marketplace (GeM) is policy-driven, specification-locked, and compliance-intensive. Government departments do not purchase vehicles like the open market. Every car, commercial vehicle, or EV is procured through a defined digital workflow with strict checks on OEM approval, Make in India, pricing logic, and post-delivery compliance.

red and black Porsche vehicle interior

What Comes Under Automobile Procurement on GeM

Government buyers procure the following vehicle categories:

  • Passenger Cars (Sedan, SUV, Utility Vehicles)

  • Commercial Vehicles (Trucks, Pick-ups, Vans)

  • Buses (Diesel, CNG, Electric)

  • Electric Vehicles (EV Cars, EV Buses)

  • Two-Wheelers (Bikes, Scooters)

  • Special Purpose Vehicles (Ambulance, Fire, Utility Vehicles)

Each category has separate technical parameters and compliance rules.

 Who Buys Vehicles on GeM

Automobile procurement on GeM is done by:

  • Central & State Government Departments

  • PSUs & Autonomous Bodies

  • Railways & Defence-linked entities

  • Urban Local Bodies & Municipal Corporations

Each buyer may add department-specific conditions beyond standard GeM parameters.

 Eligibility to Sell Automobile Products on GeM

 Mandatory Vendor Eligibility

  • Active GST Registration

  • PAN & bank account in business name

  • GeM Seller Registration with automobile category enabled

  • Clean vendor history (no major penalties)

 Vehicle-Specific Requirements

  • OEM authorization (mandatory)

  • Active dealership / OEM backing

  • Service & warranty infrastructure

  • Compliance with RTO & statutory norms

Brokers without OEM backing face limited eligibility.

Purchase Modes Used for Automobile Procurement

Government buyers use different modes depending on value and urgency.

🔹 Direct Purchase

  • Low-value or urgent requirements

  • Buyer compares live listings

  • Exact specification match required

🔹 L1 Purchase (BOQ-Based)

  • Bulk vehicle procurement

  • Lowest technically compliant bidder wins

🔹 Bid / Reverse Auction

  • High-value fleet or EV procurement

  • Multi-stage evaluation

  • Reverse auction used for price discovery

 EVs and buses mostly go through Bid / RA mode.

How Vehicle Specifications Are Evaluated

Government does not buy “brands”, it buys specifications.

Key parameters include:

  • Engine / Motor type

  • Fuel / Battery capacity

  • Emission norms (BS-VI)

  • Safety & certification standards

  • Seating, payload & body type

  • Warranty & AMC terms

 â€śEquivalent model” claims are generally rejected.

 Make in India & Local Content Preference

Automobile procurement strongly favors local manufacturing.

Supplier ClassImpact
Class-I LocalPrice & bid preference
Class-IIConditional
Incorrect declarationRejection / Blacklisting risk

False Make in India claims are treated as serious violations.

 OEM Authorization & Dealer Validation

OEM authorization must:

  • Mention exact model & variant

  • Cover bid quantity

  • Remain valid till vehicle delivery

  • Be verifiable by OEM backend team

 Many vehicle bids are rejected due to dealer–OEM mismatch.

 Tender Evaluation: How Winners Are Selected

Evaluation follows a strict order:

  1. Technical compliance check

  2. OEM & Make in India verification

  3. Price comparison (L1 among compliant bids)

  4. Reverse auction (if applicable)

  5. Purchase order issuance

Lowest price without compliance never qualifies.

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