GeM Vehicle Tender Process – How Government Buys Cars & Commercial Vehicles

Types of Vehicles Procured Through GeM

Government departments procure a wide range of vehicles, including:

• Passenger Cars (Sedan, SUV, Utility Vehicles)

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

• Buses (Diesel, CNG, Electric)

• Electric Vehicles (EV Cars, EV Buses)

• Two-Wheelers

• Special Purpose Vehicles (Ambulance, Fire, Utility)

Who Floats Vehicle Tenders on GeM

Vehicle tenders are raised by:

• Central & State Government Departments

• PSUs & Autonomous Bodies

• Municipal Corporations & ULBs

• Transport, Health, Police & Utility Departments

Each buyer can add custom tender conditions over and above standard GeM rules.

Pre-Tender Stage: Requirement & Specification Finalisation

Before the tender is published, buyers:

• Finalise budget approval

• Lock vehicle type & quantity

• Define exact technical specifications

• Specify fuel type / EV parameters

• Add service, warranty & delivery conditions

Once published, specs cannot be negotiated.

 Tender Modes Used for Vehicle Procurement

Direct Purchase

• Low-value or urgent requirements

• Buyer compares live listings

• Strict spec and variant match

🔹 L1 Purchase (BOQ-Based)

• Bulk cars or commercial vehicles

• Vendors quote against BOQ

• Lowest technically compliant bidder wins

🔹 Bid / Reverse Auction

• High-value fleet or EV tenders

• Multi-stage evaluation

• Reverse auction used for price discovery

 Commercial vehicles and buses mostly go through Bid / RA mode.

Vendor Eligibility & OEM Authorization

To participate in vehicle tenders, vendors must have:

• Valid GeM seller registration

• Active GST & PAN

• OEM authorization / dealership letter

• Service & warranty infrastructure

OEM authorization must:

• Mention exact model & variant

• Cover full tender quantity

• Remain valid till vehicle delivery

 Dealer–OEM mismatch = technical rejection.

Make in India & Statutory Compliance

Vehicle tenders strictly evaluate:

• Make in India / Local Content declaration

• BS-VI emission compliance

• Safety & homologation certificates

• EV battery & motor certifications

False declaration is treated as misrepresentation, risking blacklisting.

Tender Evaluation: How L1 Is Decided

Evaluation follows a fixed sequence:

1. Technical compliance check

2. OEM & statutory verification

3. Make in India preference application

4. Price comparison (L1 among compliant bids)

5. Reverse auction (if applicable)

 Lowest price without compliance never qualifies as L1.

Common Mistakes Vehicle Vendors Make

• Quoting wrong variant or fuel type

• Submitting expired OEM authorization

• Ignoring buyer-added tender clauses

• Aggressive underpricing in reverse auction

• Delayed registration or delivery

These errors directly impact vendor rating & future eligibility.