Breaking News
Home / Automobile Technology / What Is CBU And CKD Cars and Bikes ? CBU Vs CKD

What Is CBU And CKD Cars and Bikes ? CBU Vs CKD

Advertisement

Most of the automobile publications use the words like CBU and CKD which may sound quite confusing to many. These terms are more commonly used in terms of the Imported automobile cars and bikes. In this post I will share the meaning of these terms CBU and CKD under as some of the auto basic terms in simple language.

CBU – Completely Built Unit

Completely built unit is the terminology when a car/bike/automobile is imported/exported to/from some other country as a complete car fully assembled. These automobiles do not require an assembly before they can be sold out to the buyers in the target country’s markets. Most of the imported cars and bikes in India come as a CBU.

CKD – Completely Knocked Down

Completely knocked down car / bike /automobile is one which is imported or exported in parts and not as one assembled unit. Such units are first sent to an assembly plant in the target country where all these parts are assembled and one complete car / bike / vehicle is made using the imported components. These kinds of units generate employment in the target country as more machinery and manpower investment is needed to assemble the components to make the vehicle.

CBU

Advertisement

image credit

CBU Vs CKD

CBU and CKD do not differ much in terms of technological sense except for the fact that CBU cars / bikes / vehicles are assembled in the same country where they originate and then exported to the target country. CKD cars / bikes / vehicles are assembled in the target country where all the parts of the vehicles are assembled and then sold to the end customers.

Advertisement

When talking from Indian perspective, CBU and CKD have a sharp difference in the import duties. At present, the import duties on a CBU vehicle coming to India from abroad is liable for an import duty of nearly 110% while the CKD attracts 60% duty. This sharp difference is strategically kept like this because CBU does not create as much of revenues and employment for the target country (India in this case). A CKD when assembled in the target country requires technology, infrastructure and manpower investment which generates business and employment opportunities in the target country, which is why it is motivated.

59 comments

  1. Kindly consider beneath cited lines from the second paragraph, I think there is some error, as CBU should be in lieu of CKD, isn’t it??

    the import duties on a CKD vehicle coming to India from abroad is liable for an import duty of nearly 110% while the CKD attracts 60% duty

  2. @Wajahat
    yes, it was a typing error on my part. thanks for bringing it to notice, I have corrected the same.

  3. want to know what is c.k.d in auto industry and in customs term.
    Is an essential character of a vehicle constitute a c.k.d. even when not mounted.

  4. I am planning to buy a new car in April 2011. I have shortlisted the
    C 220 d, (economy) VW passat/jetta dsg diesel. If it’s like the import duty is slashed by 40 % (phenominal is in it) . How long should I wait.

  5. You can wait until April 2011 if you want to, there may or may not be any decisions on this, so wait at your own risk. There maybe a price rise because of budget changes in coming week.

  6. guys, what is SKD (semi knocked down) meaning? thanks all.

  7. This results in initial employment but have long term dermerits for our future generations due to pollution,overuse,congestion , especially , in countries like india where population is MULTIPLYING & resource scarcity is increasing.This , at last, will diminish quality of all organisms on earth, especially near equator.We must be aware that Globe is not warming but globe is warning us…

  8. Hi can any body explain me what is the import duty structure for import of CKD & CBU unit of battery operated golf cars pls

  1. Pingback: Renault Fluence Seen Testing In India – Launch Expected Soon

  2. Pingback: Ducati 1198 SP, 848 EVO and Diavel India Launch Specifications Details

  3. Pingback: BMW X1 Launched In India Officially–Details Specifications Features Price Variants

  4. Pingback: Maruti Kizashi Launch Date In India–28 Jan 2011

  5. Pingback: European Cars In India To Become Cheaper Post FTA In April 2011

  6. Pingback: Brand New Harley Davidson Bike In India For Less Than 4 Lakhs Maybe Possible Soon

  7. Pingback: Marti Kizashi Demand Is Strong In India- Bookings Ahead of Targets

  8. Pingback: Mitsubishi Phased Out EVO X Performance Series of Cars

  9. Pingback: All Cars With Imported Will Cost More Post India Budget 2011

  10. Pingback: CKD Duty Rates Increased 3 Folds For Most CKD Units

  11. Pingback: Launch Of Mercedes A and B Class In India by Year 2013

  12. Pingback: Peugeot 508 Sedan And 3009 MPV India Launch Soon?

  13. Pingback: Peugeot Uncovered 508 Sedan For China- India Launch Soon

  14. Pingback: Aston Martin Official Car Price In India

  15. Pingback: Mercedes Benz Cars Price Hike In India From May 2011

  16. Pingback: BMW India Starts Engine Assembly To Prevent Price Increase Due To New CKD Norms

  17. Pingback: Volvo India To Launch More Cars In India

  18. Pingback: Hyundai Santa Fe Prices Expected To Go Down

  19. Pingback: Freelander 2 Prices Drop In India about 14% Owing To Local Assembling

  20. Pingback: Kawasaki Ninja 650R Official Price In India- Specifications, Features, Pictures, Video and Details

  21. Pingback: Hyosung Bikes in India To Cost Less After Local Assembling Starts

  22. Pingback: Triumph Motorcycles Launch In India Via CBU Route

  23. Pingback: BMW X3 New Model Launched In India Starting At Rs. 41.20 Lakhs– Specifications, Features, Pictures And Details

  24. Pingback: Toyota Camry 2012 Caught Testing In India– Launch Expected Before Mid 2012

  25. Pingback: Steep Hike In Car Prices Expected In India In January 2012- Exports To Be Increased

  26. Pingback: Lexus Car Launch In India In 2013, Details, Car Models And More

  27. Pingback: Mercedes Benz India Sales Grew By 30% From Jan-Dec 2011

  28. Pingback: Official Price List of Mini Cooper, Cooper S, Convertible, Countryman In India

  29. Pingback: International Commercial Vehicle Maker Scania To Set Up Manufacturing Facility In Bangalore

  30. Pingback: Audi Q3 and Q7 SUVs To Be Assembled In India As CKD– Will Bring Down Costs

  31. Pingback: Performance Motorcycles Selling Ducati Motor Holdings For 1 Billion Euros

  32. Pingback: Volvo V40 Leaked Pictures- To Rival BMW X1 and Audi Q3

  33. Pingback: Mitsubishi Pajero Sport Launched In India At Rs. 23.53 Lakhs

  34. Pingback: Diesel Car Taxes Unchanged In Indian Budget 2012-13- More Details

  35. Pingback: How Much Increase In Cars and Bike Price In India After Budget 2012? - Details | CarBlogIndia - All About Automobiles

  36. Pingback: Maruti Ertiga In High Demand In Indonesia- Waiting Increases

  37. Pingback: Hyundai Accent And Honda Civic To Be Phased Out From India

  38. Pingback: Toyota Camry Diesel Will Not Be Launched In India- Lexus Plans Not Frozen Yet

  39. Pingback: Audi Q7 Local Production In India Started In Maharashtra

  40. Pingback: Jaguar XF Local Assembly Starts In India

  41. Pingback: 2013 Suzuki Grand Vitara Diesel SUV Launched- Pictures & Details

  42. Pingback: Maruti Will Manufacture Cars In Sri Lanka After Import Duty Hike

  43. Pingback: BMW To Go For Localization In India With Car Sales Increase

  44. Pingback: 2013 Maruti SX4 New Model Gets New Front Look- Rest All Same

  45. Pingback: Volvo To Cut Car Costs After CKD Assembly Starts In India

  46. Pingback: Triumph 250 CC Motorcycle For India and Indonesia To Be Made in India

  47. Pingback: Maruti Suzuki Ertiga Rebadged As Mazda VX-1 MPV In Indonesia

  48. Pingback: Maruti Alto 800 Launch In Algeria After India

  49. Pingback: Luxury Cars And Motorcycles Prices Increase After Budget 2013-14

  50. Pingback: Volvo V40 Spied In India- Launch Expected In Q1 or 2013

  51. Pingback: Harley Davidson Cuts Motorcycles Prices As Local CKD Assembly Starts

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>