Setting up Auto Assembly Factory | Hongqihegou Jiangbei District, China
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Setting up Auto Assembly Factory (Hongqihegou Jiangbei District, China)
So far, we are running 6 plants of chain auto assembly plants overseas, respectively located in Syria, Ghana, Angola, Cote d'Ivoire, Algeria, and Pakistan. And series of factories in Brazil, Bangladesh, Sri Lanka, Nigeria and other countries are under planning of construction.
The benefits of KD assembly plant project:
1. Best cost performance of Chinese automobile.
2. You can save more tariffs and freight cost by importing auto CKD than CBU term.
3. When you develop market, with 4S shop and technology supply which we provide, you can supply very nice after sale service.
4. The key to make this project succeed is "to proceed from reality in everything, seeking truth from facts".
5. You can use your own brand for the auto, which is an intangible assets.
6. We provide technology support and credit.
Rough prerequisites of doing auto assembly factory:
• Workshop/Factory: 5000-8000 square meters to start, and a piece of an industrial land around 20000-25000 square meters for expansion in future.
• Fund: You need to have necessary economic strength & investment capacity, specifically, two million USD at least, excluding land and workshop.
• Market channel: You’d better have your own car sales channel & network, automobile related business.
• Auto import tariff policy: The import tariff policy in your country is very important, the difference of import tariff between CKD (completely knocked down) and CBU (complete built unit)
shall be at least 30-35%; for example, if the import tariff on CBU is 35%, so it must be 5% or free on CKD. It is the key factor to set up an assembly plant in local overseas,
however, if the import tariff on CKD is almost the same with that on CBU, the auto plant will have not any profit space and it makes a gainless hard work.