New Automotive Investment Scheme gets the thumbs up

The SA vehicle manufacturers have welcomed the Automotive Investment Scheme (AIS), according to National Association of Automobile Manufacturers of SA (Naamsa) director, Nico Vermeulen. This followed minister of trade and industry, Dr Rob Davies, approving the guidelines of the scheme – part of the Automotive Production and Development Programme (APDP), which is intended to replace the Motor Industry Development Programme (MIDP) . It is a subsitute for the Productive Assets Allowance (PAA) scheme of the MIDP. The AIS is intended to grow and develop the automotive sector through investment in new and replacement automotive models, Vermeulen told FTW, as well as the manufacturing of automotive components. “We welcome the announcement of a very necessary bit of support in the form of investment incentives,” he added. Vermeulen sees it as supporting the R20-billion the motor industry is expected to invest in the next few years. “And this could be more,” he said, “if other manufacturers come to SA. It certainly encourages companies to start making investments even before the APDP starts in June 2013.” The target for the industry expansion is to be producing 1.2-million units by 2020. It will produce 450 000 this year, and is projected to hit 590 00 units by 2012. “So this is quite a big target for 2020,” said Vermeulen, “but demand will certainly continue to grow for SA to supply the world market.”