People-carrier Automotive Investment Scheme (P-AIS)

The incentive programme is available to manufacturers of people career vehicles with carrying capacities of 10 to 35 persons and a vehicle mass exceeding 2000kg. component manufacturers and tooling manufacturers supplying the heavy commercial vehicle manufacturer supply chain locally and internationally may qualify for the P-AIS. qualifying costs against which incentive benefits may be claimed include:

• Owned buildings and/or improvements to owned buildings
• New and/or second-hand, refurbished and upgraded plant, machinery and tooling

Component and tooling manufacturers may also qualify for competitiveness improvement costs where these costs may include:

• Process improvements
• Product improvements
• Quality standards
• Skills development and improvements

Benefits

• Semi Knocked Down (SKD) Vehicle Assemblers
  • SKD investments that start production from 01 January 2012 to 31 March 2015 may qualify for a grant of 20% of the qualifying investment costs.
  • For an additional 5% the project must demonstrate that the investment will result in base year employment levels being maintained throughout the incentive period and during the model phase out period.
  • No new applications with a start of production (SOP) after 31 March 2015 will be considered for the P-AIS grant.
• Complete Knocked Down (CKD) Vehicle Assemblers
  • CKD investments that start production from 01 January 2012 to 31 March 2015, may qualify for a grant of 25% of the qualifying investment costs.
  • CKD investments that start production from 01 April 2015 onwards, may qualify for a grant of 20%.
  • For an additional 5% the project must demonstrate that the investment will result in base year employment levels being maintained throughout the incentive period and during the model phase out period.
  • For a second additional 5% bonus grant (cumulative 10%) the project must meet the set economic benefit criteria.

For more information on this programme, kindly visit Dream Team Capital.