The real decision
CBU offers the simplest industrial process, while SKD can support localization goals. But lower headline duty does not automatically make assembly economical.
Compare complete systems
Evaluate volume, assembly depth, inbound packaging, facility, tooling, labor, training, quality control, warranty processes, approval route and working capital. Include ramp-up losses and line utilization.
Use stage gates
Begin with regulatory and commercial feasibility. Move to technical definition, facility gap review, pilot planning and only then launch commitments. Each gate should have evidence and an accountable owner.
When CBU may be better
CBU may be more resilient for uncertain volume, many variants or a market test. SKD becomes more credible when volume, policy, facility and long-term local operations align.
Project note: Requirements, charges, regulations and available documents vary by destination, vehicle and transaction. Confirm current local rules and project-specific supply information before commitment.