What are CBU and CKD imported cars in India?
By Admin
Reading time: 8 min read
Published on: 15 / 03 / 2023
Automobiles that are imported into a country in parts or components like wheels, engines, chassis, transmissions and even smaller components like nuts and bolts, rather than as fully assembled vehicles. Importing fully assembled cars will make you pay import tariffs whereas If you only import parts of the car, and assemble the car local, then you need to pay the lower tariffs. Assembling the car locally can increase the employment/jobs that will automatically increase the economy. Hence, cars boost the economy of the country.
Where there are upsides of the CKD cars, there are downsides also. For example, the quality control checks and test that a fully assemble vehicle would undergo, the local assembly process may not include the same.
CBU cars are high – quality built as compared to CKD cars. Manufacturing of CKD cars offers an opportunity for manufacturers to expand their global reach by hiring and training workers, investing in tools and machineries to establish local manufacturing operations. CKD cars definitely offer some benefits in cost saving to both consumers and manufacturers. But, it also, consume time and are complicated to assemble. It also, requires a certain level of expertise and technical knowledge.
CBU cars are completely built up in a factory and ready for sale. Usually, these are made in one country and are exported to other countries where they sell as a finished product. If we talk about downsides, CBU cars are more expensive as we mentioned they are subjected to high import duties and taxes in the destination country. But, on the other hand, it provides the high-quality material and reliability and comes with warranty, which provides the consumers addition piece using advanced technologies these are made under controlled environment.
CBU cars do not consume time as compared to CKD cars and also, they do not need any particular expertise to assemble as they are already fully assembled and tested in the factory. A consumer can enjoy the benefits of high-quality car without worrying about any technical issues or assembly of the CBU cars. Mostly, people prefer CBU cars who value convenience, quality and reliability.
What are the cars available in India as CBU and CKD?
There are many CKD and CBU cars that are imported and sold in India. Here are some suggestions for
CBU CARS IN INDIA:-
Jaguar F-Type
Lamborghini Huracan
BMW X7
Porche 911
Vovlo XC90
Mercedes-Benz S-Class
Land Rover Defender
Rolls Royce Ghost
CKD CARS IN INDIA:-
Toyota FORTUNER
Bmw 3-Series
Mercedes-Benz C-Class
Kia Seltos
Skoda Rapid
Suzuki Jimny
Volkswagen Jaguar
What are the various taxes to be considered while importing a car as CKD/CBU into India?
If you want to import your car in India, then you must know some of the taxes to be considered while importing a car into India:
- Basic Customs Duty (BCD): The rate of this car vary from 60% to 100% depending upon the type of the car.
- Integrated Goods and Services Tax (IGST): This is a tax is currently set at a rate of 18% that is levied on the value of the imported car plus the customs duty.
- Additional Customs Duty (ACD): This is a is currently set at a rate of 5%.
- Road Tax: This is a tax levied by the state government on the car's value or engine capacity, and the rate can vary from state to state.
- Registration Charges: For obtaining a registration number and to register a car you need to pay a registration fee that is being charged by the RTO (Regional Transport Office).
- Octroi: This is a tax levied by some municipalities on the entry of goods into their jurisdiction.
Taxes may vary depending upon the car type and the importing company’s status. As above mentioned, CKD can be cheaper than importing it as a CBU since the former can attract lower taxes and duties.
Read more:
What is the procedure for importing a car?
Availability of CBU and CKD cars may change depending on the manufacturer and the current market demand. Ind Delhi, India ABE is in the market dealing with both CKD and CBU cars that are pre-owned premium cars at best prices.
