What is the difference between CBU and CKD imports of Chinese EVs?
The CBU vs CKD choice is one of the biggest levers OEMs use to manage tariff exposure. Here's what each means for buyers.
Definitions and duty rates
CBU: full vehicle, ready to drive. Typical duty: 10–35% in most emerging markets, 27–45% for Chinese EVs in the EU (see tariff FAQ).
CKD: kit of parts + tooling for local assembly. Typical duty: 5–15%. Requires local plant certification.
SKD (Semi-Knocked Down): intermediate — major assemblies pre-fitted. Duty: usually similar to CKD but assembly investment is lower.
Where CKD matters for buyers
Thailand: BYD Rayong plant CKD from 2024. Same cars, ~15% cheaper than pre-CKD prices.
Indonesia: Wuling Cikarang, BYD 2026 CKD.
Hungary: BYD Szeged CBU from Q4 2026, CKD/local content from 2027 — will avoid EU tariff entirely.
Brazil: BYD Camaçari (former Ford plant) CKD from 2025.
Practical impact on buyer
Locally assembled cars have identical specs but different VIN prefix (denotes country of final assembly), different warranty processing (local entity), and often better parts availability.
There is no functional or safety difference between a CKD and CBU car from the same OEM.
- 01CBU = ready-built, higher duty.
- 02CKD = kit assembly locally, avoids tariffs.
- 03Both are functionally identical for the driver.
Sourcing parts or vehicles related to this?
ChinaEV.Autos connects buyers with 2,300+ verified Chinese suppliers. Get matched in minutes.