The Difference Between CKD Cars and CBU Cars
29 February, 2024
Do you know? The price of a car can be influenced by the location where it is made. That’s why there are the terms CKD cars and CBU cars. CKD itself is an abbreviation of Completely Knocked Down, and CBU itself is an abbreviation of Completely Built Up.
These two terms refer to cars whose manufacture or assembly is carried out domestically or abroad. Apart from that, there are also those who call CKD cars and CBU cars terms for domestically assembled cars and imported cars.
As for the quality itself, it has been ensured that CKD and CBU cars are maintained according to standards. However, when it comes to prices on the market, CKD cars and CBU cars will have a quite significant price difference. Therefore, if you want to buy a car, you can first pay attention to what type of car you are going to buy.
For more details about CKD cars and CBU cars, let’s look at the review below:
Understanding CKD Cars
It is a term used to describe a car that is imported with all its components but is still in an unassembled or separate condition. These components will then be assembled by the factory or ATPM (Sole Brand Holder Agent) to become a complete vehicle. Car components are imported separately, so CKD cars are cheaper because taxes are lower.
Understanding CBU Cars
This term is used to describe cars that are imported directly from the country where the vehicle was made in complete and intact condition, so that they are ready to be used.
Usually, luxury cars that are very expensive are CBU cars. Only certain countries can produce these cars because not all countries have adequate manufacturing facilities to make them. Due to high import taxes, the shortage of CBU cars makes them more expensive.
In addition, vehicle components are very difficult to find and must be imported from their country of origin. Another drawback is that some workshops cannot handle CBU cars due to the limited spare parts and equipment required.
Difference Between CKD and CBU Cars
Starting from the explanation alone, these two types of cars are, of course, very different. However, to be clearer, there are several significant differences, as an illustration:
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Prices
The first, of course, is the price. One of the reasons is the difference in taxes between CKD cars and CBU cars. CKD cars are usually more affordable because they are made in Indonesia, so the import costs are not too high. However, CBU cars are usually sold at high prices because they are imported intact, resulting in high fees and taxes.
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Market Segment
CKD cars usually have very wide market coverage. This type of car is made to meet domestic market demand, which makes the process easier and cheaper.
Meanwhile, CBU cars have a smaller market segment because of the higher costs when fully imported from abroad, and this type of car is not made in Indonesia.
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Performance
CKD cars are designed to meet the needs of the Indonesian market so that they can be used properly. Meanwhile, CBU cars are made according to international standards, so their performance is sometimes not suitable for road conditions in Indonesia.
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Maintenance
CKD cars are usually produced in large numbers, making it easier to provide maintenance and spare parts than CBU cars. Because CBU cars are made in other countries, engine maintenance is more difficult. If damage occurs, it will be difficult to find an official repair shop, and maintenance will also be more expensive.
Currently, many CKD cars are assembled directly in Indonesia as technology becomes increasingly sophisticated. Wuling production is an example. Wuling Air ev and BinguoEV are Wuling cars made entirely in Indonesia, which of course have features and performance tailored to the needs of the Indonesian market.
Buying a CKD car also supports national automotive development, where manufacturing is carried out domestically, involving thousands of workers from Indonesia.
CKD Cars in Indonesia
Some examples of cars assembled in Indonesia are the Wuling Air ev and BinguoEV. This flagship electric car from Wuling is completely produced in Indonesia according to market needs.
In accordance with its commitment to support the acceleration of electric vehicles in Indonesia, Wuling produces the two electric cars at its factory in Cikarang, West Java. The results of these CKD cars are the work of the skilled hands of professional and qualified workers in Indonesia. Apart from that, the production results have also gone through a series of tests to maintain better quality.
Rules of the CKD Car Tax
As previously explained, CKD cars are usually made or assembled in Indonesia. Therefore, this type of vehicle is not subject to import duties or additional fees such as luxury goods tax and others. Owners of cars made using CKD usually only need to pay a motor vehicle tax (PKB) of two percent of the car price.
This is an explanation of the meaning and differences between CKD cars and CBU cars. That way, now you can understand that the quality of Wuling cars is the work of the nation’s children in Indonesia, who are professional and experienced.
