Make in India in Automobile Tenders on GeM – Preference & Risks
In automobile procurement on the Government e-Marketplace (GeM), Make in India is no longer symbolic—it is algorithmically enforced. Vehicle tenders for cars, commercial vehicles, buses, EVs, and special-purpose vehicles apply mandatory local content preference, directly impacting L1 selection, bid visibility, and rejection risk.
What “Make in India” Means in GeM Automobile Tenders
Make in India on GeM is governed by local content percentage, not brand nationality.Local content includes: Manufacturing & assembly in India Indigenous components & subsystems Domestic value addition Local supply chain participation.
Import-heavy vehicles marketed by Indian dealers do not automatically qualify.
Supplier Classification Under Make in India
Every automobile bidder must declare supplier category:
Supplier Class | Local Content | Impact on Tender |
|---|---|---|
| Class-I Local | ≥50% | Highest bid & price preference |
| Class-II Local | 20%–49% | Conditional participation |
| Non-Local | <20% | Restricted / lowest priority. |
How Preference Is Applied in Vehicle Tenders
Make in India preference directly affects L1 determination.
Class-I suppliers may get price preference
Non-local vendors can be bypassed even at lower price
In EV tenders, preference is aggressively applied
A higher-priced Class-I vehicle can defeat a cheaper imported model.
Documents Required to Support Make in India Claim
Depending on tender, buyers may demand:
OEM local content certificate
Self-declaration with undertaking
Chartered Accountant certification
Model-wise manufacturing details
Documents must match exact vehicle variant quoted.
Special Focus: Make in India for EVs on GeM
EV tenders apply stricter scrutiny due to government incentives.
Buyers verify:
Battery sourcing & assembly
Motor manufacturing location
Charging ecosystem compliance
Localization roadmap
False EV localization claims are treated as serious violations.
Risks of Non-Compliance in Make in India Claims
Incorrect Make in India declaration can result in:
Immediate bid rejection
Order cancellation post-award
Vendor rating downgrade
Category restriction
Temporary or permanent blacklisting
Risk compounds across future tenders.
How Leegal Protects Vendors From Make in India Risks
Leegal acts as a compliance firewall for automobile vendors.
✔ Make in India eligibility & risk assessment
✔ OEM-local content validation
✔ Tender-wise declaration strategy
✔ Legal defense in rejection or penalty cases
✔ Advisory on EV localization compliance
We ensure vendors gain preference without risking penalties.
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