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
Department of Trade and Industry (Owner)
