Manufacturer License

manufacturer

Manufacturer: a person who manufactures or assembles new motor vehicles.

Manufacturers and distributors of new vehicles sold in Texas must be licensed by TxDMV, regardless of where the manufacturer or distributor is located.

Neither manufacturers nor distributors are allowed to sell new motor vehicles directly to Texas consumers, including municipalities. Only franchised dealers that are licensed for the line-make and type code of the vehicle are allowed to sell new motor vehicles to Texas consumers. If a new motor vehicle is sold through a bid process, the franchised dealer for the specific line-make and type code must be listed on the bid as the seller.

Prohibitions:
  • Manufacturers cannot: operate, control, or own an interest in a dealer or dealership; or act in the capacity of a dealer, directly or indirectly.
  • See TEXAS OCCUPATIONS CODE §2301.476 for details and exceptions.
Ambulances, Fire-Fighting Vehicles, or Motorhomes:
  • The terms: ambulance, fire-fighting vehicle, and motorhome are defined in the TEXAS OCCUPATIONS CODE Chapter 2301.002.
  • To be a manufacturer of these products, the finished product must meet the entire definition of an ambulance, fire-fighting vehicle, or motorhome.
  • If the finished product does not meet the definition, then the person must obtain a converter license for those products.