What is CKD or CBU ?
By: Bharath V on 1 april 2015
Hey Bharath V !!
CBU stands for Completely Built Unit, CKD stands for Completely Knocked Down kit. As far as Renault Fluence is concerned it is a CKD product assembled in India. At present Renault has tie up with Nissan and has Renault-Nissan Alliance manufacturing facility in Chennai and some of the parts are brought from Japan and assembled here and many of them manufactured here. The price range signifies the same. More number of parts imported, higher will be the price range of the vehicle.
CBU stands for Completely Built Unit, CKD stands for Completely Knocked Down kit. At present, Renault has a tie up with Nissan. These two companies have a joint venture manufacturing facility in Chennai. Some parts of Renault Fluence are procured from Japan and then assembled here. In addition, several parts of this car are also manufactured here. The price range of any car varies as per the mix of the imported and locally manufactures parts mix. If the car has significantly higher amounts of imported parts, then its price will automatically go up.
The CBU and CKD are two types of imports done in our country related to automobiles. A CBU is a Completely Built Unit; which as the name suggests is imported as fully built car. But the downside of these types of car is the heavy taxation. So, to avoid these expenses the manufacturers use the CKD (Completely Knocked Down) unit. The parts of the car are imported individually and they are assembled in the target country to reduce the costing.