Government moots preference for India-made vehicles for official use

The heavy industry ministry has said preference will be given for vehicles meeting 65 percent localisation and 60 percent for components.

By Autocar Professional Bureau

10 Dec 2018

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In its bid to encourage OEMs and component makers to domestically manufacture vehicles and components, the Ministry of Heavy Industries & Public Enterprises has notified that the government will give preference to make in India vehicles and parts for all government orders.

In an notification the ministry has said for procurment of ICE vehicles the minimum localisation required would be 65 percent and 60 percent for components to qualify as being domestically manufactured.

The ministry said, there is sufficient local capacity and local competition. It notified, "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."

The government notification comes into effect immediately and will be reviewed after March 31, 2019.