creativebala

Difference between we importing and buying CBU

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Hi friends,

What is the difference between we importing a forign car and buying a CBU here?

I have seen many forign cars in India which are not formally present in India, when this is possible, Why can't we buy, Ford Ka, or Mini instead of buying a 500.

What advantage or disadvantage will be there if we import than company doing it?

What will be the difference i excise? 

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If you are buying car (Direct import) then you have to pay 186% tax.

That means if the car invoice value is 10 L then you have pay 18.6L tax. So total cost will be 28.6L.

 

Refer ministry of finance website

 

But companies doing in different way. They are importing parts and then doing assembly in India. In that method parts tax is less also assembly cost in india is cheapest in the world (than China)

 

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i assume that if its imported by the company it should be a little bit cheaper than if an indvidual did.

CKD--completely knocked down and SKD--semi knocked down happen when manufacturers import parts and later assemble in india .

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as per my knowledge CBU stands for Completely Built up Units and entry excise for these are 120%.

Importing on your own should work out much cheaper.

for a better idea compare the prices of imports (CBUs) like Camry, CRV, Hyabusa, R1, CBR... from their Japanese webs to Indian ex showroom prices.

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Difference is only in the after Sales & Service....

CBU (or) completely built units from manufacturer gets

1. After sales support

2. Road assistance,

3. Service - spare parts will be stocked by them for easy availability....

4. Original new vehicle guaranteed....

 

whereas in Direct Import,

1. you will have to run pillar to post to find a reliable service center....

2. also, you will have to wait longer period for importing the spare parts which is very hectic task......

3. car might be used one refurbished to look new....

 

 

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