Automotive Investment Scheme to grow and develop SMME’s…

The Automotive Investment scheme makes targeted grants to support the growth and development of the automotive sector. It rewards investment in new and/or replacement models and components that will increase plant production volumes, sustain employment and/or strengthen the automotive value chain.

Automotive Investment Scheme-01


Light motor vehicle or component manufacturers that are investing in their productive capacity. Contributions to the tooling industry and to own R&D activity, enhance the benefit.



  • Non-taxable cash Incentive Scheme of 20% of the value of qualifying investment in productive assets by light motor vehicle manufactures.

  • Non-taxable cash Incentive Scheme of 25% of the value of qualifying investment in productive assets by component manufactures and tooling companies.

  • Additional taxable cash Incentive Scheme of between 5% to 10% may be made available to projects that are found to be strategic by the dtic.

  • Additional taxable cash Incentive Scheme of 5% to projects that meet the economic benefit criteria.

Automotive Investment Scheme-02

The revised guidelines

The scheme is a non-taxable, reimbursable cash grant in respect of qualifying investment in productive assets used in South African operations by:

Automotive Investment Scheme-04

  • Certain original equipment manufacturers—a 20% grant

  • Certain automotive component manufacturers—a 25% grant

  • Automotive tooling manufacturers—a 25% grant

  • New energy vehicle manufacturers—a 30% grant

  • Energy efficient vehicle manufacturers—a 30% grant


The changes in the guidelines include revisions to the qualifying investment thresholds, employment levels, and the application period. The revised guidelines also removed an additional 5% or 10% grant in respect of strategic projects or projects that fulfill certain economic criteria (now, there is only the base cash grant available to applicants).

Going forward, Business Grants and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining your application for the Automotive Investment Scheme Incentive.