What does ckd assembly mean in the automotive industry? What does ckd car mean?

What does ckd assembly mean in the automotive industry? What does ckd car mean?

Automotive industry CKD (Completely Knocked Down) assembly is what is meant, that is, all parts assembly, is a way of automobile manufacturing. In this way, all the parts of the car are divided into individual parts, and then imported into the country, and then assembled by the domestic automobile manufacturer according to the process and standards of the original factory. The main advantages of CKD assembly in the automotive industry are that production costs can be reduced, localization rates can be increased, and production can be adjusted according to market demand.

First, let’s take a look at the historical background of CKD assembly in the automotive industry. With the acceleration of globalization, the supply chain of the automobile industry is gradually dispersed, and multinational auto giants have begun to transfer part of their production links to countries and regions with cost advantages. In this context, the automotive industry CKD assembly method came into being, becoming an effective way to reduce production costs and meet market demand.

The specific process of CKD assembly in the automotive industry consists of the following six steps:

(1) Parts import: all parts of the car are divided into individual parts and then imported into the country. This process requires ensuring that all components conform to the original factory’s processes and standards.

(2) Parts storage: Imported parts need to be quality checked and stored to ensure that they are stored in the correct environment to avoid damage or deterioration.

(3) Assembly preparation: according to the production plan, prepare the corresponding parts and pre-assembly to improve assembly efficiency.

(4) Final assembly line: assembly in accordance with the original process and standards to ensure that the quality and performance of the vehicle is consistent with the original factory.

(5) Quality testing: After the assembly is completed, it is necessary to conduct strict quality testing on the vehicle to ensure that it meets the quality standards and customer requirements.

(6) Delivery to customers: Through the dealer network, the vehicle is delivered to the final customer.
The advantages of CKD assembly in the automotive industry include the following 4 aspects:

(1) Reduce production costs: Because all parts are imported in the form of spare parts, raw material costs and logistics costs can be greatly reduced. In addition, domestic assembly plants can use lower labor costs to further improve production efficiency.

(2) Improve the localization rate: Through CKD assembly in the automotive industry, domestic automakers can gradually realize the localization of parts, improve the localization rate, and reduce the dependence on imported parts.

(3) Market demand adjustment: According to market demand, automobile manufacturers can flexibly adjust the scale and type of CKD assembly in the automotive industry to meet the needs of different customers.

(4) Technology transfer: Through CKD assembly in the automotive industry, domestic automobile manufacturers can learn advanced manufacturing technologies and processes, and improve their own research and development and manufacturing capabilities.