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VGV brand SUV model SKD Ghana localization production project
The total investment of the project is 8 million US dollars, and the customer owns their own factory, including equipment procurement, first batch component procurement, working capital, etc. Annual output of 5000 units.Annual output of 5000 units. Achieve a 10% -20% return on investment within 3-5 years.
key word:
New Energy、Automobile assembly
Category:
Description
Project description:
Investment amount: 20 million US
Factory Size：50,000m2
Assembly mode：SKD
Production capacity: 5,000 units/year
Assembled models: Sinotruk VGV series, Zhongxing，Kaiyi
Cooperation mode: The Chinese side provides free assembly equipment and tooling
Achieve a 10% -20% return on investment within 3-5 years.
What is KD project?
The KD project essentially refers to the automotive parts assembly business, an international production model. It allows components to be imported from different countries and then assembled in the receiving country to form a complete automotive product.
The automobile KD assembly forms provided to foreign companies mainly include SKD1, SKD2, and CKD.
SKD (Semi Knocked Down) refers to "semi bulk": the body is supplied in the form of a welded and painted assembly, while other components such as the engine, transmission, front/rear suspension, driveshaft, exhaust system, wheel assembly, and front/rear bumper are supplied in the form of an assembly. After the loose parts are shipped abroad, they are simply assembled to form the entire vehicle.
(This approach can save on shipping costs and utilize the low-cost labor of importing countries, while enjoying lower import tariffs)
SKD1 refers to the installation of seats, interior parts, front/rear windshields, door glass, headlights, and other exterior components after the body painting is completed
SKD2 refers to a vehicle body that only completes painting (or electrophoresis) and does not have any interior or exterior components installed.
CKD (Completely Knocked Down) refers to "completely disassembled": the body is supplied in the form of dispersed welded assemblies, while other components are supplied in the form of assemblies. After arriving abroad, welding, painting, and final assembly processes are required to complete the entire vehicle assembly.
(This approach is suitable for situations where labor costs need to be saved, as the labor costs in the destination country are usually lower)
Advantages of automobile KD loose parts
1. Save shipping costs: After disassembling KD loose parts into finished products, both the volume and weight will be reduced, thereby saving shipping costs.
2. Reduce tariffs: Due to the lower import tariffs on KD parts compared to whole vehicle imports, costs can be reduced.
3. Promote domestic industrial development: KD components need to be assembled in the importing country, so low-cost labor in the importing country can be utilized to promote domestic industrial development and increase employment opportunities.
4. Occupy the domestic market: By using KD parts, cars can be assembled in the domestic market and occupy the domestic market.
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