New Car Category

In Malaysia, the auto market is somewhat unique to the rest of the world.

Under the New Car Category we have;

CKD – Completely Knocked Down
CBU – Completely Built Up

CKD

These cars are locally assembled in Malaysia. Cars are brought in parts form hence the name “completely knocked down” and are locally assembled. Popular brands such as Mercedes, BMW, Honda, etc have CKD versions here in Malaysia.

CBU

These are cars fully imported from their country of origin hence the name “completely built up”. Most imported cars in Malaysia are of a CBU model.

What is the Difference between the 2?

It all started way back in the mid eighties when the government decided to hike up the import duty on foreign cars that brands like Mercedes and Honda decided to assemble their cars locally. The biggest motivation here was of course driven by cost.

CKD cars are generally cheaper than their CBU siblings. However in some cases the difference is not much.

Since the beginning, the image of the CBU models are far more superior than the CKD’s in terms of built quality and specifications.

Although car manufacturers may claim that the difference in quality is hardly noticeable, there are a majority of consumers who feel otherwise.

Therefore, in deciding it really comes down to ones budget and interest.

Between the 2 versions, CBU are always able to hold a higher resale value compared to the CKD.

Another thing to bear in mind also is that not all CBU cars these days are assembled or manufactured in their country of origin.
Mercedes and BMW have a plant in Port Elizabeth South Africa where these cars are manufactured (not just assembled but many parts are made locally).

Therefore, do a little bit of homework before parting with your hard earned cash especially when there are many parallel importers available these days to choose from.