On most of the automobile websites and blogs including this, you would see the words like CBU and CKD used quite often. These two terms are more commonly used when it comes to imported automobile cars and bikes. In this post, we will explain what exactly do they mean and how they are different from each other.
CBU Vs CKD
CBU stands for Completely Built Unit while CKD stands for Completely Knocked Down. Let’s get to know about both of them in detail.
CBU – Completely Built Unit
Completely built unit is the term used for a car/bike/automobile which is imported/exported to/from some other country as a complete fully assembled unit. These automobiles do not require any kind of assembling before they can be sold 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 are the one which are imported or exported in parts and not as one single assembled unit. Such parts are sent to an assembly plant in the target country where all these parts are assembled and one complete car / bike / vehicle is manufactured using the imported components. The CKD units create employment opportunities in the target country manpower and machinery is required to assemble the components to make the vehicle.
Talkig specifically about India, CBU and CKD have a sharp difference in the import duties. This sharp difference is strategically kept like this because CBU does not create as much of revenues and employment for the country. A CKD when assembled in the target country requires infrastructure, technologyand manpower investment which generates business and employment opportunities in the target country.
Hope you found this article informative. If you want us to cover any specific topic or have any questions, do let us know via the comments section below. We would be glad to answer your queries too.