People-Carrier Automotive Investment Scheme (P-AIS)

OBJECTIVE

The P-AIS (a sub-component of the AIS) is designed to stimulate a growth path for the people – carrier- vehicle industry through investment in new and/ or replacement models and components that will result in new jobs or retention of existing jobs and/ or strengthen the automotive value chain.

BENEFICIARIES
  • Complete Knocked down (CKD) vehicle assemblers
  • Component manufacturers
BENEFITS
  • Non-taxable cash grant of between 20% and 35% of the value of qualifying investment in productive assets approved by the dtic.
  • CKD investments that started production from 1 January 2012 to 31March 2015, may qualify for a grant of 25% of the qualifying investment costs.
  • CKD investments with a start of production from 1 April 2015 onwards may qualify for grant of 20% of the qualifying investment costs.
  • For an additional 5%, the project must demonstrate that the investment will result in the maintenance of base-year employment levels throughout the incentive and model phase-out periods.
  • For a second additional 5% bonus grant (cumulative 10%) P-AIS grant, the project must meet the set economic benefit criteria.
  • Component manufacturers may qualify for a grant of 25% of the qualifying investment costs

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