Complete knock down
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Complete Knock Down (CKD), is a complete kit needed to assemble a motor vehicle. It is a common practice within the automotive industry, as well as bus and rail vehicle manufacturers, to sell 'knocked down kits' to their foreign affiliates in order to avoid high import taxes and/or receive tax preferences for providing local manufacturing jobs. An 'incomplete' kit is known as SKD or Semi Knocked Down. Both types of KDs are collectively referred to within the auto industry as KDX or Knocked-Down eXport, while cars assembled in the country of origin and exported whole to the destination market a...
Complete Knock Down (CKD), is a complete kit needed to assemble a motor vehicle. It is a common practice within the automotive industry, as well as bus and rail vehicle manufacturers, to sell 'knocked down kits' to their foreign affiliates in order to avoid high import taxes and/or receive tax preferences for providing local manufacturing jobs. An 'incomplete' kit is known as SKD or Semi Knocked Down. Both types of KDs are collectively referred to within the auto industry as KDX or Knocked-Down eXport, while cars assembled in the country of origin and exported whole to the destination market are known as BUX, or Built-Up eXport. KD kit assembling plants are cheaper to maintain because there is hardly any modern robotic equipment, and the working force is usually much less expensive in comparison to the home country, so they are perfect for low- volume production. The CKD concept allows firms in developing markets to gain expertise in a particular industry. At the same time, the CKD kit exporting company gains new markets that would otherwise be closed.
