SKD is an acronym that stands for "Semi Knocked Down." It is a term commonly used in manufacturing and refers to a method of production where a product is partially assembled before being shipped and eventually completed at its destination.
In the automotive industry, SKD is frequently used to describe the process of manufacturing vehicles or their components. It involves disassembling a vehicle or its parts into smaller units or sub-assemblies, such as the engine, transmission, chassis, or body, before shipping them to another location. These components are then reassembled or combined with locally sourced parts to create a complete vehicle.
The purpose of using SKD production is to facilitate transportation and minimize costs, particularly regarding customs duties or taxes. By partially disassembling the product, it can be shipped in a more space-efficient manner, reducing transportation expenses. Additionally, it allows manufacturers to take advantage of lower labor costs in other regions where the final assembly is carried out.
SKD is different from Completely Knocked Down (CKD) production, where the product is fully disassembled into individual parts and shipped to be assembled at its destination. CKD production requires more significant assembly efforts and typically involves a higher degree of localization in the final assembly process.
Overall, SKD is a manufacturing process that involves partially assembling a product before shipment, with the aim of streamlining transportation, reducing costs, and enabling local assembly at the destination.
