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CKD

Completely knocked down means importing the spare parts of a vehicle and manufacturing it.  This helps cut costs at customs and lowers labor rates as well.

 

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CKD implies for automobile models that are imported into the country in disassembled form. Importing disassembled spare parts, helps in cutting costs drastically by buying the parts produced locally, paying lower customs taxes and the lower labor wages charged by the workforce for assembling the vehicle. Production in this fashion results in a lower retail price and helps save a lot of money in the automotive industry.  It is also beneficial for importing special spare parts or components, as they would be bought at lower prices thus saving further.

 

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