The CKD (Completely Knocked Down) model refers to fully disassembling the entire vehicle into individual parts and completing the full assembly process at the destination factory or assembly center. Compared with SKD and CBU, the CKD approach enables deeper localization and is widely used by global vehicle manufacturers as a cost-effective and flexible production method.
- Significant Reduction in Import Tariffs
Many countries impose the highest tax rates on fully built units (CBU), while duties on parts and components are usually much lower. Importing in CKD form can greatly reduce overall import expenses.
- Promotes Local Industrial Development
CKD assembly requires production lines, equipment, and trained technicians, helping boost local manufacturing capabilities and often receiving government policy support.
- Meets Strict Localization Requirements
Many regions require a certain percentage of local parts or local assembly. CKD makes it easier to comply with such regulations and avoid trade restrictions.
- Higher Production Flexibility
Since CKD assembly closely resembles a complete manufacturing process, it allows extensive customization based on local market needs, including structures, configurations, colors, electrical systems, and more.