Medium and Heavy Commercial Vehicles Scheme

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The Medium and Heavy Commercial Vehicles Automotive Investment Scheme (the MHCV-AIS) is a sub-component of the Automotive Investment Scheme (the AIS). The AIS is an incentive designed by the South African government 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.

Medium and Heavy Commercial Vehicles Automotive Investment Scheme Funding from the MHCV-AIS is available to manufacturers of trucks, bus chassis, truck and bus bodies, together with component manufacturers supplying these industries.

Qualifying costs against which the MHCV incentive benefits may be claimed include newly-acquired buildings; and new and/or second-hand, refurbished and upgraded plant, machinery, and tooling.

Component manufacturers may also qualify for competitiveness improvement costs, which include process improvements, product improvements, quality standards, and quality standards and information technology systems.

The objective of the Medium and Heavy Commercial Vehicles incentive is to improve the competitiveness of component manufacturers in South Africa through the improvement of processes, products, quality standards, and related skills development through the use of business development services.

Medium and Heavy Commercial Vehicles Automotive Investment Scheme The MHCV grant will be limited to the competitiveness improvement costs incurred within the first three years after the start of production date and a total grant amount of R1 million per entity per three year cycle.

Manufacturers of medium and heavy automotive vehicles may qualify for a non-taxable grant of between 20 and 30 % while component manufacturers and tooling manufacturers may qualify for a non-taxable cash grant of between 25 and 35 %.

The application for funding through the Medium and Heavy Commercial Vehicles Scheme must be submitted at least 120 days (heavy commercial motor vehicle manufacturers) and 90 days (component manufacturers and tooling manufacturers) prior to the qualifying investment.

Contact us for more information on funding through the Medium and Heavy Commercial Vehicles Scheme.