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Indian Manufactured Vehicles To Be Given Preference

The Ministry of Heavy Industries & Public Enterprises reported that contract preference will be given to made in India vehicles and parts for official government used vehicles. The Ministry of Heavy Industries and Public Enterprises released a notification stating that it aims to encourage automakers to manufacture vehicles and parts domestically. 

A minimum localisation of 65 percent and 60 percent for ICE vehicles and components, respectively, is the benchmark required to be fulfilled by OEM’s to qualify as domestic manufacture.    

The ministry asserts on sufficient local capacity, resources and local competition at disposal. The ministry also notified that, “Where the estimated value of procurement is Rs 50 lakh or less, then only local suppliers shall be eligible, subject to meeting minimum local content. This would be applicable for procurement of 2Ws, PVs, 3Ws and CVs alike.”

This government notification is now in immediate effect and will only be reviewed after 31st March, 2019.