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WHAT DO THE TERMS CBU, CKD AND FLM MEAN FOR CARS?

What do the terms CBU, CKD, FLM mean?

Sources of Cars – New and Used Cars

 

The car market can be divided into two segments, namely new and used. In Malaysia, new cars can be distinguished according to the status of their local or foreign original equipment manufacturers (OEMs). Furthermore, cars produced by foreign OEMs can be further classified according to their completion of manufacturing place. Therefore, based on the above mentioned fact, new cars will carry any of these statuses:

  1. Completely Built-Up (CBU) for foreign imported unit;
  2. Completely Knocked-Down (CKD) for locally assembled unit, either local or foreign OEMs; or

 

iii. Full Local Manufactured unit (FLM)

sources of cars in malaysia and what do the terms cbu, ckd and flm mean?

The labels coined for local and foreign cars are predominantly influenced by the government automotive policies, which is directly reflected in the pricing of cars in the market. Depending on the status of the car, the price will be based on the tax imposed.

 

On the other hand, the used car segment consists of local units and imported refurbished units. Local used units are cars that are sold either by the original owners or through used-car dealers (for example, ezAuto platform). Imported refurbished cars are those brought to Malaysia from other countries. In terms of registration, local used units will bear the same registration code (plate number) upon the change of ownership, but imported used units will be registered with a new (current) registration code.

 

Based on the record from the Road Transport Department’s (RTD), the used car trade is believed to be one of the major contributors, evident through the high volume of applications of vehicle ownership transfer annually. Looking to buy or sell a car? Look no further? Visit www.ezauto.my to learn more on how to buy and sell your car on a trust-worthy online platform at the best prices today!