Automotive Investment Scheme (AIS)

Support Programme for Electric Vehicles

Automotive Investment Scheme (AIS) – Broad-Based Black Economic Empowerment (BBBEE) Important Notice

Frequently Asked Questions

Automotive Incentive Scheme Interpretation – Note 01/2015

Urgent Notice: New Address for submission of AIS Documents;

The Automotive Investment Scheme (AIS) is an incentive designed to grow and develop the automotive sector through investment in new and/ or replacement models and components that will increase plant production volumes, sustain employment and/ or strengthen the automotive value chain.

Objectives of incentive scheme

  • Strengthen and diversify the sector through investment in a new and/or replacement models and components.
  • Increase plant production volumes.
  • Sustain employment and/or strengthen the automotive value chain. 

Benefits

  • The AIS provides for a non-taxable cash grant of twenty percent (20%) of the value of qualifying investment in productive assets by original equipment manufacturers and twenty five percent (25%) of the value of qualifying investment in productive assets by component manufactures and tooling companies as approved by the dtic.

Eligible Enterprises

Light Motor Vehicle Manufacturers / Original Equipment Manufacturers (OEMs)

New OEM applicants must achieve a minimum production volume of 50 000 units per annum per plant. This should be achieved within twenty-four (24) months after the anticipated start of production date and be maintained throughout the claim cycle.

A special dispensation on volumes may be considered for new OEMs entering South Africa.

Existing OEM applicants must achieve a minimum production volume of 50 000 units per annum per plant to qualify for a grant offering of twenty percent (20%) of the qualifying investment. This should be achieved within twenty-four (24) months after the anticipated start of production date and be maintained throughout the claim cycle.

Failure to maintain the annual production threshold of 50 000 units per annum per plant will result in a reduction of the base grant of the qualifying investment.

Component Manufacturers or Deemed Component Manufacturers

  • A contract has been awarded and/or a letter of intent has been received for the manufacture of components to supply directly into the OEMs supply chain locally and/or internationally; and
  • A local/ international OEM supply chain turnover of at least twenty-five percent (25%) of total entity turnover; or R10m by the project in OEM supply chain invoicing per annum.

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 two years after the start of production date and a total grant amount of R1 million per entity per two (2) year cycle.
  • The number of competitiveness improvement applications will be limited to two applications per two-year cycle.

“All applicants must be B-BBEE compliance as per the applicable AIS guidelines and must adhere to legislative requirements governing the sector”

Contact:

Contact details to be used for Incentive Applications and Claims from 1 November 2023

Applications AISapps@thedtic.gov.za
Enquiries AISContact@thedtic.gov.za
Claims AISClaims@thedtic.gov.za
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