The AIDC’s Government Incentive Schemes department administers government and automotive industry incentives designed to grow and develop the automotive sector. It was established in 2002 and it is one of the longest serving departments within the organisation.

This department is contracted to the Department of Trade and Industry (dti), to conduct company evaluations and to ensure that they are eligible and comply with the requirements of the Automotive Investment Scheme (AIS) when claiming grants for investing in assets such as buildings, tooling and machinery.

The objective of the dti’s AIS is to grow the global competitiveness of the South African automotive manufacturing industry using state-of-the-art production equipment and practices, as well as providing companies with cash rebates up to 35% of the value of their assets.

For a first-time investor, trying to understand the schedules set out in incentive schemes such as the AIS can be complicated. Through the AIDC’s Government Incentive Schemes Department, companies are advised on how to calculate the benefits to be obtained from the AIS incentives portfolio when doing investment feasibility studies for automotive and component manufacturing.

As part of its reporting, the AIDC provides input to Government regarding the AIS as it did on the Productive Asset Allowance (PAA) that preceded it. It also provides aggregated input via the Motor Industry Development Council (MIDC) and its task teams.

The AIDC supports the dti in strengthening and diversifying the automotive sector through investment in assets to increase OEM and component production volumes, with the objective of sustaining employment within the automotive value chain.

Contact Details:

jasper-gisName: Prof Jasper Steyn (Pr Eng)

Position: Senior Manager: Government Incentive Schemes

Tel: (+27) 12 564 5246

Email: jsteyn@aidc.co.za