What is CBU and CKD mean in automotive terms?

In automotive terms, CBU stands for “Completely Built-Up”. It refers to a vehicle that is fully assembled in a factory and ready for sale. This means that all the major components of the vehicle, such as the engine, transmission, and body, are assembled in the factory before being shipped to the destination country for sale. CBUs are usually more expensive than CKD (Completely Knocked Down) vehicles, which are shipped in parts to be assembled in the destination country. CBUs are typically imported by countries with limited automotive manufacturing capabilities or where the cost of labor is high.

CBU cars are generally more expensive than CKD (Completely Knocked Down) cars due to higher production costs and import duties. However, in Malaysia, CBU cars from certain countries are sometimes cheaper than locally assembled CKD cars due to government policies and market conditions.

Malaysia imposes high taxes and tariffs on imported cars to protect the local automotive industry, which is dominated by national car makers such as Proton and Perodua. However, the government has also negotiated trade agreements with certain countries that allow for lower tariffs on CBU cars from those countries. For example, under the Malaysia-Japan Economic Partnership Agreement, Japanese-made CBU cars can enter Malaysia at lower tariffs than cars from other countries.

In addition, market conditions such as exchange rates and supply and demand can also affect the pricing of CBU cars in Malaysia. For example, if the Japanese yen is weak compared to the Malaysian ringgit, Japanese automakers may be able to offer their CBU cars at lower prices to compete with local CKD cars.

Overall, the pricing of CBU cars in Malaysia is influenced by a combination of factors, including production costs, import duties, government policies, trade agreements, exchange rates, and market conditions.

Here’s a comparison table between CBU and CKD:

	CBU (Completely Built-Up)	CKD (Completely Knocked Down)
Assembly	Fully assembled in factory	Assembled in destination country
Shipping	Shipped as a whole unit	Shipped in parts and packages
Cost	More expensive	Cheaper
Local Employment	Fewer jobs created	More jobs created during assembly
Customization	Limited customization options	Greater flexibility for customization
Market Availability	Available in wider markets	Limited to markets with local assembly capabilities

Car brand with their manufacturing & assembly plant in Malaysia

Car Brand	List of Assemblers
Toyota	Assembly Services Sdn Bhd (Shah Alam Plant) Jalan Pelaya 15/1 40000 Shah Alam Selangor Darul Ehsan Tel : 03-5123 2000
Toyota	Assembly Service Sdn Bhd (Bukit Raja Plant) No.1, Jalan Keluli 2/KU2 Kawasan Perindustrian Bukit Raja 41050 Klang, Selangor Darul Ehsan Tel : 03-3348 2000
Foton Weststar	BerjayaAssembly Sdn Bhd 99 & 99, A-C, Jalan Tampoi 81200 Johore Bahru Tel : 07-236 1400
BAW AMC	Deauto Industries Sdn Bhd Lot 87725, Mukim Klang Taman Perindustrian Pulau Indah, Pulau Indah 42900 Pelabuhan Klang Selangor Darul Ehsan Tel : 03-3101 2588
Volkswagen Mercedes-Benz (Actros) Mitsubishi Fuso	Hicom Automotive Manufacturers (Malaysia) Sdn Bhd (Plant I) Kawasan Perindustrian Peramu Jaya P O Box 3, 26607 Pekan Pahang Darul Makmur Tel : 09-424 4000
Mercedes Benz	Hicom Automotive Manufacturers (Malaysia) Sdn Bhd (Plant II) Kawasan Perindustrian Peramu Jaya P O Box 6, 26607 Pekan Pahang Darul Makmur Tel : 09-424 4000
Hino	Hino Motors Manufacturing (Malaysia) Sdn Bhd Lot No. PT 11636, Jalan Tech Valley 1/2 & 3/2 Sendayan Tech Valley 71950 Bandar Sri Sendayan Negeri Sembilan Darul Khusus Tel : 06-781 2800
Honda	Honda Malaysia Sdn Bhd Hicom Industrial Park Pegoh P O Box 70 78000 Alor Gajah, Malacca Tel : 06-559 1500
Hanvan Hohan Yang Tse ZNA	HS Assembly Sdn Bhd Lot 3424, MK 16, Kampung Telok 13800 Sungai Dua Seberang Perai Utara Pulau Pinang Tel: 012-803 3633
Isuzu	Isuzu-Hicom Malaysia Sdn Bhd Kawasan Perindustrian Peramu Jaya P O Box 6, 26607 Pekan Pahang Darul Makmur Tel : 09-424 3800
Hyundai-Inokom BMW Mazda Mini	Inokom Corporation Sdn Bhd Lot 38, Mukim Padang Meha 09400 Padang Serai, Kulim P O Box 88, 09000 Kulim Kedah Darul Aman Tel : 04-403 1888
Citroen Kia Peugeot	STELLANTIS GURUN (MALAYSIA) SDN BHD Lot 6744 & 7270 Kawasan Perindustrian Gurun 08300 Gurun, Kedah Darul Aman Tel : 04-466 9100
Bei Ben Jac	N.B. Heavy Industries Sdn Bhd Lot 2819, Block 9, Sibu Town District Jalan Salim, 96000 Sibu Sarawak Tel : 084-212 126
Perodua	Perodua Manufacturing Sdn Bhd Perodua Automotive Centre Sungei Choh, Locked Bag No. 226 48009 Rawang, Selangor Darul Ehsan Tel : 03-6092 8800
Proton	Perusahaan Otomobil Nasional Sdn Bhd (PROTON) Kawasan Perindustrian HICOM Batu Tiga, Beg Berkunci No. 7100 40918 Shah Alam, Selangor Darul Ehsan Tel : 03-5191 1055
Proton	Proton Tanjung Malim Sdn Bhd Tanjung Malim Plant Mukim Hulu Bernam Timur 35950 Behrang Daerah Padang Batang, Perak DarulRidzuan Tel : 05-457 8888 / 457 7726
CAM King Long Sinotruk	R&A Commercial Vehicles Sdn Bhd Lot 1564, Batu 4, Jalan Kapar 42100 Klang Selangor Darul Ehsan Tel : 012-314 8160
Scania	Scania (Malaysia) Sdn Bhd Lot 6, Jalan 6, Kawasan Perusahaan Fasa 3 Bandar Sultan Sulaiman 42000 Pelabuhan Kelang Selangor Darul Ehsan Tel : 03-3176 7586
Foton Mitsubishi Renault Subaru UD Truck	Tan Chong Motor Assemblies Sdn Bhd (Plant 1) 249 Jalan Segambut 51700 Kuala Lumpur Tel : 03-6256 8888
Nissan	Tan Chong Motor Assemblies Sdn Bhd (Plant II) PT 15014, Mukim Serendah Locked Bag 201, 48000 Rawang Selangor Darul Ehsan Tel : 03-6099 0288
Sinotruk	TN Engineering Sdn Bhd Lot 88 Jalan Berjaya 9 Taman Perindustrian Berjaya 81200 Kempas Lama Johore Bahru Tel : 07-556 8212
Volvo	Volvo Car Manufacturing Malaysia Sdn Bhd Jalan Bicu 15/6 40000 Shah Alam Selangor Darul Ehsan Tel : 03-5519-1421

Source from: http://maa.org.my/statistics.html

SUMMARY OF PASSENGER & COMMERCIAL VEHICLES PRODUCED AND ASSEMBLED IN MALAYSIA FOR THE YEAR 2010 TO 2022

Year	Passenger Cars	Commercial Vehicles	Total Vehicles
2010	522,568	45,147	567,715
2011	488,261	45,254	533,515
2012	509,621	59,999	569,620
2013	543,892	57,515	601,407
2014	545,122	51,296	596,418
2015	563,883	50,781	614,664
2016	503,691	41,562	545,253
2017	459,558	40,081	499,639
2018	522,392	42,579	564,971
2019	534,115	37,517	571,632
2020	457,755	27,431	485,186
2021	446,431	35,220	481,651
2022	650,190	52,085	702,275

Source from: http://maa.org.my/statistics.html