Department of Trade, Industry and Competition (DTIC) - Medium and Heavy Commercial Vehicles Automotive Investment Scheme (MHCV-AIS)

The DTI started the Medium and Heavy Commercial Vehicles Automotive Investment Scheme (MHCV-AIS) to grow and develop the automotive sector to increase plant production and sustain employment. The finance is a non-taxable cash grant of 20% to 25% of the total cost of the project. 

• Companies manufacturing medium and heavy commercial vehicles may receive a 20% grant.
• Companies requiring equipment for automotive component manufacture or tooling may receive a 25% grant.

Note: The timing of your application is important. Completed applications should reach the offices of the DTI no later than:

• One hundred and twenty (120) days, but not earlier than one hundred and eighty (180) days, prior to the commencement of production for medium and heavy commercial vehicle manufacturers.
  
• Ninety (90) days, but not earlier than one hundred and twenty (120) days, prior to the commencement of production for component manufacturers, deemed component manufacturers and /or tooling companies.
  

You will be expected to submit a detailed business plan that includes a marketing and sales plan, budgets, cash flow statements, balance sheet (the balance sheet for the last three years must be provided).

Eligibility criteria

• The business must be registered in South Africa and in good standing with SARS.
  
• Any assets purchased with the grant funding must be used in the South African business.
  
• An existing or new manufacturer of medium and heavy motor vehicles (trucks).
  
• Chassis, engine and transmission assemblies.
  
• A component manufacturer that can prove that a contract is in place and/or a contract has been awarded and/or a letter of intent has been received for the manufacture of components to supply into the medium and heavy commercial vehicle manufacturer supply chain locally and/or internationally.
  
• A component manufacturer that can prove that after this investment it will achieve at least 25% of total entity turnover or R10m annually by the end of the first full year of commercial production, as part of a medium and heavy commercial vehicle manufacturing supply chain locally and/or internationally.
  

Application process

It is important to read through the guidelines before submitting an application as there are many restrictions and processes that you will need to comply with or take into account (these vary according to the focus of the business you run).  

Please visit the DTI website, scroll to the bottom of the page to download the application forms.