Is CKD Domestic or Imported?

[McAriana]

CKD belongs to the import category. CKD is a specialized term referring to vehicle models imported in completely knocked-down form. Local production of components benefits from lower tariffs and wages, utilizing local labor for assembly into complete vehicles, which are then sold at relatively lower retail prices. Below is the relevant introduction: 1. Introduction: CKD stands for "Complete-Knocked-Down," which includes parts ranging from a single screw to large pre-formed body panels, none of which have undergone any assembly process. 2. Tariff Reduction: Importing such parts into the country can reduce tariffs. The current national tariff standard sets the import duty rate for parts at 10%, while the import duty rate for complete vehicles is 25%. Additionally, the import of complete vehicles may incur higher tax rates based on engine displacement, along with consumption tax and value-added tax, among others.

[EmmanuelDella]

I've bought quite a few cars and have some insights about the CKD model. Essentially, it involves importing parts and assembling them domestically, which doesn't count as purely domestic production nor is it fully imported. A simple example would be certain joint-venture brand cars, where core engines or electronic components are shipped from abroad and assembled in Chinese factories. This approach aims to save on tariffs and shipping costs, making the cars more affordable. I remember a friend mentioning that such cars are easier to repair because spare parts are locally stocked, but assembly quality can be inconsistent, occasionally leading to issues. Overall, the car labels often indicate domestic production, yet they contain imported elements. If you're car shopping, pay attention to the brand manual or manufacturer's description to understand the origin before deciding. In short, CKD is a hybrid model that cuts costs but relies on foreign technology.

[DallasLynn]

Having driven multiple cars, the term CKD often comes up. Strictly speaking, it refers to a method of importing parts, where component kits are brought in from abroad and assembled into finished products at local factories. Therefore, it's neither purely domestic nor directly imported like fully built-up vehicles. Take some domestic SUVs as an example—their chassis come from overseas, assembled in China, and then labeled as domestic products. This approach helps reduce costs, offering consumers more affordable options. However, I've noticed that such cars sometimes lack stability, so choosing a reliable brand is crucial. How to identify them? Check the nameplate or the manufacturer's website for the assembly location. Ultimately, it's driven by economic factors to boost local manufacturing.

[DeLukas]

From a technical perspective, CKD stands for Complete Knock Down, which refers to the local assembly of fully imported parts. This means that the main components are imported, but the manufacturing of the finished product is a local operation. Therefore, it is not classified as either imported or domestically produced but rather a strategic type. It is commonly used during policy encouragement periods, allowing companies to mitigate tariff risks. For example, some new energy vehicles enter the market via CKD. When consumers encounter such products, they should check the label for clarity: if it states 'Assembled in China,' it carries a domestic label but contains imported elements. Simple operations should avoid overly complex labeling to prevent confusion.