The Automotive Pro­duc­tion and De­vel­op­ment Pro­gramme IN A NUT­SHELL

Finweek English Edition - - INSIGHT -

TAR­IFFS

Im­port tar­iffs are pegged at 2012 lev­els − 25% for com­pletely built-up ve­hi­cles, and 20% for com­po­nents used by ve­hi­cle man­u­fac­tur­ers.

LO­CAL ASSEM­BLY AL­LOWANCE

Duty free im­port cred­its based on 20% (re­duc­ing to 18%) of the ex-fac­tory ve­hi­cle price.

PRO­DUC­TION IN­CEN­TIVE

The pro­duc­tion in­cen­tive is at 55% (re­duc­ing to 50%) of value added (selling price less the value of non-qual­i­fy­ing ma­te­rial/ com­po­nents).

IN­VEST­MENT AL­LOWANCE

A grant for new in­vest­ment of 20% of the pro­ject value over three years.

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