Honda Malaysia to focus on CKD units

Honda Malaysia Sdn Bhd wants to focus on selling CKD cars instead of CBU cars due to the government’s moves to re-examine the CBU import values.

They fear the government might impose a Profit and General Expense (PGE) charge for CBUs, which was imposed previously on a few mainly Korean marques. That move had pushed sale prices 30-38% higher, making Korean cars totally uncompetitive.

From the period of January 2005 to August 2005, Honda Malaysia recorded sales of 16,124 CKD units and 3,061 CBU units. This is why Haniff is so rich. He holds the Honda CBU APs.

Would this mean we can expect to see a CKD version of the popular Honda Jazz put on sale soon?

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • Joshua on Oct 12, 2005 at 5:47 pm

    i doubt the malaysia govenrmnet will allow a car like jazz to be CKD. the price will be lowered down so much, kill proton and perodua. :P

    Like or Dislike: Thumb up 0 Thumb down 0
  • Mango on Oct 12, 2005 at 5:55 pm

    ya…, kill em.., kill em….!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Lee Wye Jon on Oct 12, 2005 at 6:00 pm

    If there's a reason why Jazz won't be CKD it's because of the City. They are basically the same car afterall. Who's gonna get a City if Jazz becomes CKD? It'll probably be at the same price level.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Michael Chua on Oct 12, 2005 at 6:20 pm

    Honda Jazz is a winner because it's a petrol-sipper. Such cars should see better sales in the current market of high oil prices. A Jazz is still cheaper than a hybrid like the Honda Insight or Toyota Prius. Are hybrids available in Malaysia?

    Like or Dislike: Thumb up 0 Thumb down 0
  • narquis on Oct 12, 2005 at 6:39 pm

    Michael Chua: Honda will be launching Civic Hybrid soon, estimated price will be around 400k !!! beleive it or not !!

    Like or Dislike: Thumb up 0 Thumb down 0
  • yhtan on Oct 12, 2005 at 6:41 pm

    can i ask what is the meaning of CKD and CBU?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Great Wall Of China on Oct 12, 2005 at 6:46 pm

    CKD means Completely Knock Down Unit..which means it's assembled in Malaysia……typically…,it does contain local material..and can be called Made in Malaysia and it's much cheaper than a CBU unit…

    CBU means Completely Built Unit…If i'm not mistaken about the name which means it's imported directly from Japan or etc. and the parts is 100% exclude local material….Usually the import duty can kill you….

    Like or Dislike: Thumb up 0 Thumb down 0
  • Xoomie on Oct 12, 2005 at 6:53 pm

    CKD – Complete Knock Down (locally assemble)

    CBU – Complete Built Up (fully imported)

    Like or Dislike: Thumb up 0 Thumb down 0
  • kalen_XI on Oct 12, 2005 at 7:10 pm

    malaysian government is like a big mummy who protects proton(spoiled brat) too much…

    protection is needed…nevertheless..when the company is 20 years old..it needs to be independant!!!jst like a child..

    if the gov keep raising such taxes on foreign cars…foreign countries will do the same to proton over there

    Like or Dislike: Thumb up 0 Thumb down 0
  • dear narquis,

    "Civic Hybrid soon, estimated price will be around 400k ", are u sure, if this is true, it is like paying for the price of petrol at one go. Standard Civic is around 130k, that will be paying 270K in advance petrol to buy this civic hybrid.

    Like or Dislike: Thumb up 0 Thumb down 0
  • travis on Oct 12, 2005 at 7:45 pm

    Actually i gonna sense the upcoming NAP will disbenefit those CBU less than 2.0cc, hence taxes for 2.00cc below cars will be higher, hence much expensiver cars. This will disbenefit and a big blow to korean cars , which mostly are CBU (getz, chevoret aveo) and suzuki swift.

    But since Honda and Toyota is gonna focus to CKD, there a high possibility that the upcoming NAP is beneffiting those CKD ones.

    But seriously, most SEA may prefer the city over the jazz due to our mentality which has get used to sedan cars.

    n u telling me civic hyrib for 400K? which sources u got it from? duh! That much more expensive than a evo!!!! I dont recall a hyrib car is that expensive. Last time honda mysia did offer a civic hyrib for 100k++ only.

    Like or Dislike: Thumb up 0 Thumb down 0
  • DOG THE WAN on Oct 12, 2005 at 8:31 pm

    What about the G said before, where all imported car under 1600cc will not be imported soon?

    This Jazz can be CBU?? I don't think so, unless this JAZZ engine cc is 1700cc and above maybe is possible lah!

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 12, 2005 at 8:40 pm

    as usual, the proton bashers only have a narrow field of view. Any move to protect proton in the local market also protects perodua, as well as naza…etc.

    Do some research before posting lah. The malaysian govt doesn't control what cars a manufacturer wants to CKD or not. it is entirely the manufacturers decision. To setup a CKD car takes a lot of time and expense. Access to an assembly plant is also crucial. Large volumes of the car will then need to be sold to recoup the initial cost to get it going.

    Like or Dislike: Thumb up 0 Thumb down 0
  • DOG THE WAN on Oct 12, 2005 at 8:42 pm

    Sorry TYPO shoud be CKD not CBU.

    All vehicle except National cars (POTONG, P2, Nazi,….etc) only can get Engine cc under 1600cc, others makers will be completely stop selling it maybe!!

    The G should change it to all vehicle are not allow to be imported or CKD except joint venture with National cars.

    What a funny Country? Only POTONG and National car will be appear in the CITY soon….Wah…ha..ah…ha………

    Like or Dislike: Thumb up 0 Thumb down 0
  • pakwan on Oct 12, 2005 at 8:48 pm

    Civic Hybrid in Australia launched several months back.

    http://www.honda.com.au/civic/hybrid/price/price….

    Regards.

    Like or Dislike: Thumb up 0 Thumb down 0
  • stupid rafidah on Oct 12, 2005 at 10:34 pm

    shit if cbu civic are not alloweds than the price of cbu eg's and ek's in the second hand market also will naik harga

    ah…….what a nightmare

    f the g

    Like or Dislike: Thumb up 0 Thumb down 0
  • epalhead on Oct 12, 2005 at 11:12 pm

    jazz users out there…do you think that ur car is worth RM105K++??

    for 1.5?? is it worth it? or u like to contribute to our beloved govt. huge amount of duty and ……..(u all know the rest)….and u guys have to face the finance for what…7 to 9 yrs on hire purchase agreement whereby the govt. gets their money upfront.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Jeremy C on Oct 12, 2005 at 11:26 pm

    As far as I'm concerned, the more CKDs the better regardless of what make they are, at least more ppl would be able to afford alternatives to local cars. I think proton and perodua have been protected long enough, it's time to see how they measyre up to foreign vehicles. Of course, all this is just wishful thinking on my part…i can't see it happening anytime soon :(

    Like or Dislike: Thumb up 0 Thumb down 0
  • i wish evo will be CKD

    priced around 180k?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Selipar on Oct 13, 2005 at 1:08 am

    The G would be reluctant to lower the taxes levied on the car for fully imported CBU unit & inclusively for CKD units as it contribute the largest pie of GDP (KDNK). please correct me if i'm wrong. So that mean to say, the money collected would be spent as recently tabled in the Budget 2006.

    There are definitely pros & cons as a consequences from the taxes imposed on us as buyers/consumers…

    the ideas is…don't simply propagate any kind of subversive against the G. Please just give some comments as Paul intended it to be…not as a forum to bash somebody.

    Like or Dislike: Thumb up 0 Thumb down 0
  • is anyone out there willing to get a pay cut ??

    so the problem also with our G, they are not willing to get a pay (tax) cut too.

    so, finally, lets all work hard to get the $$ to buy cars other then P1 and P2 (P3,P4 etc etc) :)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Great Wall Of China on Oct 13, 2005 at 2:12 am

    haiyo…

    want to buy cheap car without taxes…go to Langkawi and Labuan….easier

    Like or Dislike: Thumb up 0 Thumb down 0
  • sekot on Oct 13, 2005 at 2:20 am

    CKD is good la… at least local people got job to do wat, and the spare parts is going to be cheaper la.. imagine, currently P1/Toyota/Honda/P2 use common part? check out its radiator… its the same part.. starter, fog lamp, antenna (ie from same supplier) ..how abt wiper? good move and kudos to the G to improve its duty regime from 40% to less?

    Like or Dislike: Thumb up 0 Thumb down 0
  • E-Nabill on Oct 13, 2005 at 2:57 am

    ya i always though that the price if jazz is a big rip off , above 100k for a 1.5,thrs no way to justify this…not worth it all,should be same price as city,80 sting….bt i guess it has a big H logo infront,so ppl dont mind to be ripped off….

    Like or Dislike: Thumb up 0 Thumb down 0
  • nyrone on Oct 13, 2005 at 4:02 am

    hurkk….

    interested?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Poxue on Oct 13, 2005 at 5:51 am

    Paul san,

    I truly agree with E-Nabill on the ridicilous Jazz's price (eventhough its a CBU model)…same

    goes with the pathetic Smart car (RM80K ++ if I'm not mistaken). Makes me wonder how did Suzuki manage to bring out its Swift less than 90k …coz if Im not mistaken..it is also CBU (or is it not?)…..some more its got a really fresh new look ….as compared to the 2 mentioned.

    Any idea whether Honda will be assembling the latest Civic locally..and price

    expectation?

    Like or Dislike: Thumb up 0 Thumb down 0
  • eRis-Aeir4s on Oct 13, 2005 at 9:08 am

    Lestat : Calm it man. Wanna get cheaper , non-super-ultra-ridiculous-tax cars? – Simple.

    Destroy the Saga blueprints along with the documents regarding P1 and you get a P1-free era. Which would mean no protection policies. And lower vehicle prices.

    But , far as I know , ( I know little..) The amount of benefits we get from a manufacturer CKD'ing their merchandise is very much. We gets jobs , less economic deficits , cheaper cars (this is not controlled by the market forces , probably controlled by G.) , and probably better service and cheaper parts too..

    Like or Dislike: Thumb up 0 Thumb down 0
  • aksMs on Oct 13, 2005 at 3:51 pm

    It's good for Honda. Instead of paying off to certain people for the APs, they could gain more by selling CKDs. They only could sell a few CBUs. Now with those bloodsuckers off their back, they could sell more CKDs as it is cheaper.

    More CKDs!

    Paul: one insider told me, CKD E-Class, in Pekan, they had to cut down the number of production due to low quality of QC. The problem is not the equipment or facilities but the assembymen lack of skill and problems with their attitude. (No wonder we got junk local products).

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 13, 2005 at 5:17 pm

    All you guys complaining about proton should grow up man. Face the facts, cars will never ever be cheaper. Imagine honda selling the accord at RM150k today, and sales are good. Tommorow, malaysia opens up car market, and all cars compete on equal ground. Do you seriously believe that honda will lower the price of the accord to RM60-70k??

    They will keep selling at RM150k, and pocket all the extra profits. Likely scenario = Foreign car maker makes more money from our country, local car companies may go under, SMI's start dropping like flies, thousands lose jobs, local economy starts going backwards, Govt loses tax revenues, Govt increases tax somewhere else to make up for the deficit(tax our nasi lemak maybe), inflation continues and we all end up losing big time.

    If you cant accept it, you should plan now to move to another country, where you will probably have something new to "bi*ch" about anyways.

    or…

    accept the facts for what it is, support the country you live in despite all its faults. Look at cars you desire, and plan your life, career..etc and aim to attain them in the future. It is not impossible.

    Like or Dislike: Thumb up 0 Thumb down 0
  • superman on Oct 13, 2005 at 5:28 pm

    Heading says " Honda to focus on CKD". But most of you narrow minded clowns start bashing Proton and the Govt.

    Grow up la. read up. do proper research . then post your comments.

    Dog The wan,

    Which City do you live in? Where I live ( KL/PJ aka Klang Valley) National cars account for less than 30% on the road. Everyone else is driving a Mercedes or Beemer or Honda.

    Like or Dislike: Thumb up 0 Thumb down 0
  • epalhead on Oct 13, 2005 at 6:16 pm

    alo honda driver ("dunno wether u drive one or not") :

    did u think accord price @ RM 150k worth its value????….

    Dude..honda produced millions car a year la dude…unlike proton or perodua (not more than 200k per annum) if i'm not mistaken,

    so they can sell their product at a lower range….like i said earlier, in "MALAYSIA"..i repeat, in "MALAYSIA" jazz for over 100k???? its ridiculous dude…did u know how much it really is for jazz??? its not value for money buy la dude (unless someone with money but…….). Ask dealer la how much our beloved government took on the duty..then u'll see how much the car worth.

    btw i do agree one thing….car prices will not go down…u're so clever on that issue…tq for the info. really appreciate it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 13, 2005 at 6:35 pm

    if i dont drive a honda, i wont say i'm a honda driver.

    btw, no where in my comment did i talk about "if a car is worth so and so price".

    If you have something relevant to say about my comments, then say it. but from what you've written, i dont think so.

    btw, im not a kid fresh out of highschool. i know how much it costs to manufacture a car, and i'm not talking about retail price here.

    Like or Dislike: Thumb up 0 Thumb down 0
  • epalhead on Oct 13, 2005 at 6:49 pm

    and one more thing honda driver ("dunno wether u drive one or not") …

    i luv my country very much and by giving and expresssing my opinion about how my govt. rules, make their policy…etc. doesnt make a "terrorist" and have to leave my country dude..Malaysia is a democratic country not authocratic la dude. feels free to throw ur opinion (but there is limitation) and dun get to emotional by giving those nonsence advise….(sighs). grow up!.

    i bet u were not even born when Tok Det inspired the PROTON. u dun know how a car is priced those days without proton and perodua. (sighs) kids these days.

    and dont talk bout taxes, budget defisit, monitery policy, fiskal policy, and so on so forth. i believe u not even know what u have said.

    we dun wan cheap car. we want a car that has a "value for money" and as a tax payers, we deserve to know where my money goes. what did i get? who will benefit? why oil price still increases? why tolls rate increases? why govt make a contract with highway consessionaire and gives them a price hike @ every three year without considering the no of vechile used the highway? and many more question. As a tax payer, i have rights to say.

    Thank You..

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 13, 2005 at 6:59 pm

    this is not an argument, this is a fact of life. I have only stated the facts of the situation we face today. When faced with the facts of life, we adapt, and do the best we can. Going headon into a wall doesn't help anyone.

    you are attempting to get personal. its got nothing to do with what car i drive, how old i am, what i do etc. Besides that, you know nothing about me. Yet you have already categorised me as a kid, and a person who has no knowledge or understanding of anything at all.

    Seems like you are a person who cannot accept the world we live in today.

    btw, you are not the only tax payer in this country.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Jared on Oct 13, 2005 at 7:03 pm

    Honda_driver,

    I simply can't dig your arguments and your conclusion is based on false premises. Do you think that had Proton not been around, some 20,000 people now involved in A to Z of manufacturing of Proton cars would be jobless and homeless? If there was no Proton, there would still be vendors – supplying to other industries or car assemblers, and millions of Protons on the road now would be replaced by other makes.

    The fact that you are NOT fresh from high school is even more puzzling for me to digest.

    Competition will mostly benefit customers – the opposite of monopoly or duopoly. So, when all car manufacturers compete on equal footing, beside brand loyalty and specifications, pricing will be a major deciding factor for customers to buy a car. So, if the car prices don't go any lower, at least specs and safety features most certainly will be better.

    The way you talked about job loses, economy going backward, deficit, and revenues pretty much shows that you slept through your Economic 101 classes, if your had attended one.

    And your last line, about us non-conformists going out of Malaysia is a little too much. Your mouth is writing cheque your body can't cash.

    A little advice – Please don't talk cock here.

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 13, 2005 at 7:14 pm

    jared,

    please share with me, what "false premises" did i mention?

    If you read my comments, you will note that it is just a "hypothetical" prediction on my part. It is not meant to be taken as fact. Thats all i have to say about that.

    Since i slept through, and probably did not take economics 101, please educate me then.

    How many proton vendors are there today? how many jobs do they create. If todays format of car taxes are abolished as everyone here wishes, wouldnt it make more sense for car manufacturers to import in CBU cars? no assembly needed, no vendors needed… how about that for a scenario?

    Being a non-conformist also makes you accountable. If you are going to speak out about something you do not like in government, stop doing it in a forum where idiots like me hang out. Go and do something tangible. Write to your govt representatives, start a movement or something, i dont know.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Jared on Oct 13, 2005 at 7:26 pm

    Honda_driver

    Ok, at least you qualified your statement there. Since this is a very complex and at times sensitive topic – I would rather not venture further. Doing otherwise would be a waste of time. It's like talking about whose religion is right/better.

    Peace!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • KL Lim on Oct 13, 2005 at 7:29 pm

    Honda Driver..

    Just ignore the epalhead …

    I dun think honda so expensive for us to own … maybe for him .. who knows ??

    LOL

    Like or Dislike: Thumb up 0 Thumb down 0
  • honda_driver on Oct 13, 2005 at 7:34 pm

    Hi jared, agreed, my intentions are to discuss a topic openly like adults. not trying to degrade or attack anyone here.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Another Honda Driver on Oct 13, 2005 at 7:36 pm

    just work hard & u will get the car u wanted or u can stay in other country & drive cheap car there. Thank you.

    Like or Dislike: Thumb up 0 Thumb down 0
  • epalhead on Oct 13, 2005 at 7:41 pm

    PEACE!!

    Like or Dislike: Thumb up 0 Thumb down 0
  • ..a guy give me this advice, "You want an expensive car, then work for it", yeah work for it..after 20 years of 'proton protection', if 20 years ago we can afford saga, then today we should afford beemers (or at least a honda), if not you are the same with the 'proton' you bash day and night, never grow up (like you all said!)

    ..having said that, i'm driving protons (not planning to buy any expensive car yet, so illogical the price to me!) and enjoying every moments of it, including to the SC, for repairs, claim warranty etc…heheheheh..

    ;-)

    Like or Dislike: Thumb up 0 Thumb down 0
  • epalhead on Oct 14, 2005 at 12:28 am

    i agree wit u jake…

    Like or Dislike: Thumb up 0 Thumb down 0
  • gegaoff on Oct 14, 2005 at 4:11 am

    well, yes indeed that when the local car market open, the car price may still be the same as current, but when they is one stupid fellow want to break in market barrier with a quick move ( lower car price), the market trend will go together… of coz, this just a teory, who know?

    cheers

    Like or Dislike: Thumb up 0 Thumb down 0
  • 3rd honda driver on Oct 15, 2005 at 1:06 am

    yes, if u want expensive then be willing to work hard for it. not ask the world to give it to you

    PEACE!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Just another driver on Oct 21, 2005 at 7:03 am

    Honda driver i totally agreed with you that if you work hard for it then you get a better car. But before all of you attack on CBU cars and feel it is expensive to buy a Jazz at 105K, well who to blame for the expensive price? but then again if you look at the quality material of the CBU with Proton or Perodua you will get what i mean. All my life i had bought so many cars be it CBU or CKD (mind you i do drive a Proton and Perodua too) and i can say until to-date these so call Malaysia car no where near CBU cars in term of quality and advance technology. It not that i dont want to support Malaysia cars but after driving them i am totally fed-up and angry because not only we paying such an (mind you not cheap too Malaysia cars) expensive for a such low quality and problem cars.Another thing sure G cant lower too much of the cars price becos it will effect the finance company (dont forget those cars still under finance) and used cars price.To me i feel whether G lower or increase the cars prices make no different becos when we sell our car to used car dealer they will see what price the new car selling now and also the demand so mean if new cars lower then when we sell our car, we also get lower value and same goes when increase.Honda driver is right, Honda wont sell their Accord unless the G allow and Proton or Perodua also lower their car price at 20-30K. Dont attack me ahhh hehehehe just my opinion.Yeah want a good cars work for it and dont expert the world goin to give it to you hahaha and another thing i always believe ——you paid what you get (you paid less you get cheap but as for local cars it not the same hahahaha you paid expensive but get cheap)Man our local cars company cheating us in money and life (you may ask what life?………did you see our local cars Proton/Perodua got two air bags for all theis cars?????)

    Like or Dislike: Thumb up 0 Thumb down 0
  • Captain Grind on Nov 05, 2005 at 8:05 pm

    Mizuno has a lot of problems to settle

    1) NAP doesn't allow Alor Gajah as center of automobile production

    2) No new models in 2005

    3) No ambitious sales target for 2005

    4) Half of HQ staff have left to other car companies. Honda are advertising so many vacancies again and again in newspapers

    5) Heard from dealer that CBU … jammed in port (Westar problem?)

    Like or Dislike: Thumb up 0 Thumb down 0
  • qjumper (Member) on Jun 25, 2007 at 3:58 am

    Getting back to the original post.

    Does anyone know which cars are ckd, I have been trying for ages to get a list.

    Re the Proton & Perodua thing, I am from the UK but I love Malaysia. I would like to see the G stop its protection and for local car makers to make exceptionally good cars. Protection always kills an industry when it is exposed to the open market. The best course for Proton is to build a fabulous high quality car. It will take a few years to be recognised as such world wide but it can happen. The Koreans are hlf way there and they didnt start too long ago.

    If you disagree with me thats OK but the UK government tried to do a protection job on British Leyland including MG, Austin, Morris, Triumph, Vanden Plas, Riley, Rover etc. They are all dead now.

    Like or Dislike: Thumb up 0 Thumb down 0
  • mazbee (Member) on Jun 25, 2007 at 9:21 pm

    qjumper, Are you aware that this post is about two years ago??? Others may not be interested to read this post anymore. Sorry can't help but try to post your question in another newer article.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required