GlossaryEN1 min readUpdated: Jun 25, 2026

Knock-Down Car Kit Supply Chains (CKD Logistics)

CKD logistics (Completely Knocked Down) allows automakers to avoid high import tariffs on finished vehicles while meeting local manufacturing requirements in the destination country.

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Last updated: 25 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Completely_knocked_down

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Logistics Concept

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Definition & Explanation

CKD logistics (Completely Knocked Down) allows automakers to avoid high import tariffs on finished vehicles while meeting local manufacturing requirements in the destination country. Rather than shipping an assembled car, the manufacturer dismantles all components at the origin facility, packs them into standardized export crates, and transports them by sea or rail to an assembly plant abroad, where local workers reassemble the vehicle. This model is particularly common in emerging markets, where tariffs on finished vehicles are prohibitive but duties on parts remain significantly lower. Specialized CKD logistics providers manage the full chain: kitting, packaging engineering, hazardous goods compliance, multimodal transport, and quality checks through to the assembly dock. The term should not be confused with SKD (Semi Knocked Down), which involves pre-grouped sub-assemblies rather than fully disassembled parts.