The 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.
- Light motor vehicle manufacturers that have achieved or can demonstrate that they will achieve a minimum of 50 000 annual units of production per plant, within a period of three years; or
- Component or deemed component manufacturers that are part of the Original Equipment Manufacturer (OEM) supply chain and will achieve at least 25% of a total entity turnover of R10 million 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.
- Strengthen and diversify the sector through investment in new and/or replacement models and components;
- Increase plant production volumes; and
- Sustain employment and/or strengthen the automotive value chain.
- The AIS provides for a taxable cash grant of 20% of the value of qualifying investment in productive assets, as approved by the dti; and
- An additional taxable cash grant of 5% to 10% may be made available for projects that significantly contribute to the development of the automotive sector.