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Trade,Export and Investment Financial Assistance (Incentives)
 

People-carrier Automotive Investment Scheme (P-AIS)

Automotive Incentive Scheme Interpretation - Note 01/2015

The People-carrierAutomotive Incentive Scheme (P-AIS)is a sub-component of the Automotive Incentive Scheme (AIS) and provides a non-taxablecash grant of between 20% and 35% of the value of qualifying investment in productive assets approved by the dti.

Qualifying projects will be evaluated on the following economic benefit requirements:

  • Tooling;
  • Research and Development (R&D) in South Africa;
  • Employment creation / retention;
  • Strengthening the automotive supply value chain; and
  • Empowerment

The approved P-AIS grant is to be disbursed over a period of three (3) years and in all cases, grant payment is subject to an evaluation by the dti to determine whether the project achieved the stipulated performance requirements.

Objective

The People-carrier Automotive Investment Scheme (P-AIS)is designed to stimulate a growth path for the people carrier vehicles industry through investment in new and/or replacement models and components that will result in new or retention of employment and/or strengthen the automotive vehicles value chain.

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.

  • Component Manufacturers

    • Component manufacturers may qualify for a grant of 25% 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 achieve at least two of the set economic benefit requirements.
    • For a second additional 5% (cumulative 10%) P-AIS grant, the project must meet the set economic benefit criteria.

Eligible Applicants

  • Semi Knocked Down (SKD) Vehicle Assemblers

    • Mono-built motor vehicles for the transport of between 14 and 35 persons including the driver and with a vehicle mass exceeding 2000kg, trimmed or untrimmed and painted but not fitted with engines, transmission assemblies, axles, radiators, suspension components or braking equipment.
    • SKD investment projects should have a start of production of between 01 January 2012 and 31 March 2015.

  • Complete Knocked Down (CKD) Vehicle Assemblers

    • People-carriers for the transport of between 10 and 35 persons including the driver with a vehicle mass exceeding 2000kg.
    • Floor panels, body sides or roof panels are not permanently attached to each other; the engine and transmission assemblies, axles, radiators, suspension components, steering mechanisms, braking or electrical equipment or instrumentation are not fitted to such floor pans or chassis frames; the bodies/cabs are not fitted to floor pans or chassis frames.

  • Component Manufacturers

    • A component manufacturer that can prove that a contract is in place / a contract has been awarded / a letter of intent has been received for the manufacture of components to supply into the medium and heavy commercial vehicle manufacturer supply chain locally and/or internationally.
    • A component manufacturer that can prove that after this investment it will achieve at least 25% of total entity turnover or R10million annually by the end of the first full year of commercial production, as part of automotive (medium and heavy commercial vehicle) manufacturer supply chain locally and/or internationally.