South Africa announces tax incentives to boost EV production
South Africa to Get Electric Car Purchase Incentives, President Ramaphosa Announces
Support Programme for Electric Vehicles
Automotive Investment Scheme (AIS) – Broad-Based Black Economic Empowerment (BBBEE) Important Notice
Frequently Asked Questions
Automotive Incentive Scheme Interpretation – Note 01/2015
Urgent Notice: New Address for submission of AIS Documents;
The Automotive Investment Scheme (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.
Objectives of incentive scheme
Light Motor Vehicle Manufacturers / Original Equipment Manufacturers (OEMs)
New OEM applicants must achieve a minimum production volume of 50 000 units per annum per plant. This should be achieved within twenty-four (24) months after the anticipated start of production date and be maintained throughout the claim cycle.
A special dispensation on volumes may be considered for new OEMs entering South Africa.
Existing OEM applicants must achieve a minimum production volume of 50 000 units per annum per plant to qualify for a grant offering of twenty percent (20%) of the qualifying investment. This should be achieved within twenty-four (24) months after the anticipated start of production date and be maintained throughout the claim cycle.
Failure to maintain the annual production threshold of 50 000 units per annum per plant will result in a reduction of the base grant of the qualifying investment.
Component Manufacturers or Deemed Component Manufacturers
Competitiveness Improvement Costs for Component Manufacturers, Deemed component Manufacturers and Tooling Companies
"All applicants must be B-BBEE compliance as per the applicable AIS guidelines and must adhere to legislative requirements governing the sector”
Contact details to be used for Incentive Applications and Claims from 1 November 2023
Please follow the steps in this document to download and save Forms on your local drive
Notice pertaining to the processing of personal information
together, growing the economy
In many markets overseas, government incentives surrounding new energy vehicles (NEVs) have meant widespread adoption by consumers, but are there any incentives locally for these new products?
The short answer is no, and South Africa has not yet implemented widespread incentives or government rebates specifically targeted at NEVs. This does not mean there are no plans for increased NEV adoption locally, though. An article on our CEO George Mienie''s website regarding a Green Paper for Electric Vehiclesmakes for exciting reading.
Until the Green Paper becomes an official White Paper, the proposals set forth within it cannot be signed into law by our President, after the due process, of course. So, until then, we can only speculate as to what sort of incentives may be plausible locally. Here are some of the incentives and goals surrounding NEVs in other nations:
Recently, the South African private sector (and South Africa in general) has been boosted by the President''s announcement regarding further relaxations to the existing legal framework applicable to private renewable energy generation.
Aside from addressing the current electricity supply shortfall, this will also hopefully assist in boosting South Africa''s electric vehicle market, including the infrastructure needed to increase the roll-out of electric vehicles and charging stations, with the ultimate goal of this taking South Africa closer to its goal of getting to net zero carbon emissions. At the same time, it is important to understand how tax laws encourage or discourage the use and purchase of electric vehicles.
It is a well-accepted principle that taxes can achieve several different purposes including increasing revenue for governments but also importantly encouraging or prohibiting certain behaviour. The Carbon Tax Policy published by National Treasury in May 2013 specifically recognised the important role that carbon taxes play in internalising the external costs of climate change and creating the correct incentives to stimulate changes in the behaviour of producers and consumers.
About South africa electric vehicle incentives
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