What is the Automotive Investment Scheme (AIS)?
The Automotive Investment scheme(AIS) makes targeted grants to support the growth and development of the automotive sector. The AIS 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.
Benefits of the grant?
- 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.
Eligible Enterprises
- Light motor vehicle manufacturers that have achieved, or can demonstrate that they will achieve, a minimum of 50 000 annual units of production per plant, within a period of three (3) years; or
- Component or deemed component manufacturers that are part of the Original Equipment Manufacturer (OEM) supply chain; or
- Will achieve at least 25% of total entity turnover or R10 million by the end of the first full year of commercial production as part of a light motor vehicle manufacturer supply chain, locally and / or internationally.
The scheme is a non-taxable, reimbursable cash grant in respect of qualifying investment in productive assets used in South African operations by:
- 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
