CBU (Complete Built-Up) vs CKD (Completely Knocked Down) vs SKD (Semi Knocked Down)

Complete Built-Up (CBU) is a term used in the automotive industry to describe a vehicle that is imported from another country in its finished or completed form. It includes the chassis, engine, body, drive-train, and other components that have been fully assembled in the country of origin. CBU vehicles are often more expensive than their locally-assembled counterparts, as the cost of shipping and import taxes are added to the cost of the vehicle.

Completely Knocked Down (CKD) is a term used in the automotive industry to describe a vehicle that is imported from another country in its unassembled form. It includes the chassis, engine, body, and other components that have k in the country of origin. CKD vehicles are usually cheaper than their CBU counterparts, as the cost of shipping and import taxes are lower. The vehicle is then re-assembled in the country of import, which adds to the cost.

Semi Knocked Down (SKD) is a term used in the automotive industry to describe a vehicle that is imported from another country in its partially assembled form. It includes the chassis, engine, body, and other components that have been partially assembled in the country of origin. SKD vehicles are usually cheaper than their CBU and CKD counterparts, as the cost of shipping and import taxes are lower. The vehicle is then re-assembled in the country of import, which adds to the cost.

The main difference between CBU, CKD and SKD is in the amount of assembly that has taken place at the source country. CBU vehicles are fully assembled, CKD vehicles are completely disassembled and SKD vehicles are partially assembled. Additionally, CBU and CKD vehicles are usually more expensive than SKD vehicles due to the cost of shipping and import taxes.

Import duty which is shown for different types of units is the amount of car in percentage that the company needs to pay as tax if they need to bring the car to India.

 Criteria / Applicability Import Duty (%)
Used Cars 125
Cars CBUs whose CIF* value is more than $40,000

Or Petrol Engine> 3000 CC
Or Diesel Engine> 2500 CC

100
Cars CBUs whose CIF* value is less than $40,000

And petrol Engine< 3000 CC
And Diesel Engine< 2500 CC

60
Two-wheeler CBUs 
50
Commercial Vehicle CBUs 30
SKD containing engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly (Passenger Vehicles) 30
SKD containing engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly (Two-wheelers) 25
SKD containing engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly (Commercial Vehicles) 
25
CKD containing engine, gearbox and transmission mechanism, not in a pre-assembled condition 15

 

*CIF (Cost, Insurance and Freight) is an expense paid by the seller to cover you guessed it, Costs to Freight the unit and Insure it in case of an accident. The insurance is compulsory and not a choice.