Automotive Investment Scheme

The Automotive Investment 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

Light Motor Vehicle Manufacturers

• Should have achieved or can demonstrate that it will achieve, within three years, a minimum of 50 000 annual units of production per plant.
• Should demonstrate that it will achieve within three years a minimum of 50 000 annual units of production per plant.

Component Manufacturers or Deemed Component Manufacturers

• A component manufacturer that can prove that a contract is in place and/or a contract has been awarded and/or a letter of intent has been received for the manufacture of components to supply into the light motor 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 R10m annually 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.

Competitiveness Improvement Costs for Component Manufacturers, Deemed component Manufacturers and Tooling Companies

• The objective of this benefit is to improve the competitiveness of component manufacturers through the improvement of processes, products, quality standards and related skills development through the use of business development services.
• The grant will be limited to the competitiveness improvement costs incurred within the first three years after the start of production date and a total grant amount of R1 million per entity per three year cycle.

Should you be interested in applying for the incentive, Dream Team Capital can assist you. Contact us today for professional assistance in streamlining your application for the Automotive Investment Scheme.