Auto parts trade proper noun "CKD&SKD"

CKD (Completely Knock Down) Full Bulk

CKD is a proper term for all imported vehicle models in all parts. Parts and components produced locally are assembled into vehicles with lower tariffs and lower wages, and are sold at low retail prices. Price for sale.

At present, China's imported vehicle manufacturers or OEM OEMs use full-range parts to assemble assemblies or components on the assembly line and carry out inspections and tests. All parts can be imported parts, or locally produced parts. Most of the OEM suppliers now use a part of imported components. Some locally produced components or some locally produced components are assembled into assemblies or components on the assembly line.

SKD (Semi Knock Down) Semi-bulk Parts

In international trade, especially in the international automobile trade, the auto companies in the vehicle exporting country dismantle the finished products and export them in the form of semi-finished products or components, and then the import manufacturers complete the finished vehicle assembly in their own country by self-assembly. And sell it.

In this way, for exporters, in addition to saving freight and using the cheap labour of the importing country, they can also enjoy a lower import tariff than the entire vehicle. For importing countries, they can promote the development of their industries. Increase employment opportunities and occupy the role of the domestic market. Among them, SKD (semi-bulk parts) refers to the major components of the automobile assembly (such as the engine, chassis, etc.), which are basically packaged in the form of semi-finished products. The importing country will install them into vehicles on the spot.

This method is adopted by China's imported cars and other vehicle manufacturers at the beginning. For example, in the early stage of the production of Shanghai Santana cars, only tires, radio and television receivers, etc. were used, and most of the assembly and parts were imported into Shanghai Volkswagen as an assembly vehicle by SKD.

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