The People-carrier Automotive Investment Scheme is a sub-component of the Automotive Incentive Scheme and 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.
The incentive programme is available to manufacturers of people career vehicles with carrying capacities of 10 to 35 persons and a vehicle mass exceeding 2000kg.
Component manufacturers and tooling manufacturers supplying the heavy commercial vehicle manufacturer supply chain locally and internationally may qualify for the Scheme. Qualifying costs against which incentive benefits may be claimed include:
- Owned buildings and/or improvements to owned buildings
- New and/or second-hand, refurbished and upgraded plant, machinery and tooling
Component and tooling manufacturers may also qualify for competitiveness improvement costs where these costs may include:
- Process improvements
- Product improvements
- Quality standards
- Skills development and improvements
- 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%) grant, the project must meet the set economic benefit criteria.
- Component manufacturers may qualify for a grant of 25% of the qualifying investment costs.
Going forward, Business Grants and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining your application for the People-carrier Automotive Investment Scheme.