South Africa’s automotive sector remains a cornerstone of our industrial economy – accounting for around 30% of manufacturing output – and serves as a critical engine of innovation, job creation, and supply-chain development. Building deep, resilient value chains—from local component suppliers to tooling partners—strengthens competitive advantage and fuels long-term growth.

At Decusatio Working Capital Solutions, we understand the vital role that capital equipment and working capital strategies play in enabling exports, local production scale-up, and value-chain integration. The Department of Trade, Industry and Competition (DTIC) shares this commitment through its Automotive Investment Scheme (AIS) – a flagship DTIC incentive designed to grow the industry by offsetting some of the cost of qualifying investments in productive assets.

What does the AIS offer?

The AIS provides a non-taxable reimbursable cash grant for investments in capital equipment supporting manufacturing operations:

• Original Equipment Manufacturers (OEMs) of light motor vehicles may receive 20% of qualifying investment in productive assets, provided they reach production volumes of at least 50,000 units per plant within 24 months of starting production 

• Component manufacturers and tooling companies can qualify for 25% of their investment costs, provided they supply directly into an OEM’s supply chain and meet turnover or contract thresholds (e.g., 25% of entity turnover or R10 million in OEM invoicing per annum) 

• New Energy Vehicle (NEV) and Energy-Efficient (EE) vehicle manufacturers may qualify for even higher grant rates – up to 30% of qualifying investments, reflecting the sector’s transition to a greener future 

These incentives align with broader industrial objectives under the South African Automotive Masterplan (SAAM): growing local content, improving global competitiveness, expanding employment, and deepening value addition in the automotive value chain by 2035. 

Why this matters for you

Whether you’re scaling up your manufacturing operations with new production lines, upgrading tooling, or investing in capital equipment to diversify into NEVs or EE vehicles – AIS can reduce the cash-flow burden of these strategic investments. It’s one of the most powerful DTIC incentives for boosting your working capital efficiency and accelerating return on investment.

Ready to accelerate your project?

If you’re considering a significant capital equipment investment and want a partner who understands working capital solutions, DTIC incentives, and the application process, you’re in the right place. Complete the form on the right, and a member of our team will be in touch promptly to explore how Decusatio Working Capital Solutions can steer your project toward success.