Export tariffs on complete vehicles are getting higher and higher, and profits are getting thinner and thinner? KD spare parts exports are becoming a "profit lifeline" for China small and medium-sized automobile foreign traders. However, 90% of merchants lose money because they can't set prices-they can't calculate costs, they can't step on tariffs, and they can't keep profits, and they end up busy in vain. This practical article, written specifically for small and medium-sized automobile foreign traders, explains KD model selection, price composition, quotation formula, and risk prevention and control thoroughly in one go, and can be directly used in orders after reading it.

1. Understand first: How to choose the three KD models directly determines the bottom line of pricing

KD does not simply demolish a car. The degree of dismantling = tariff cost = difficulty of landing. If you choose the wrong model and quote, you will lose money.

CKD All Loose Parts: All parts are disassembled and welded, painted, and assembled locally. Advantages: The lowest tariff, the most suitable localization policy, and suitable for long-term deep cultivation.

SKD semi-scattered parts: The body is welded and the engine/transmission assembly is only assembled locally. Advantages: Fast assembly, low threshold, suitable for small and medium-sized orders, priority is given to novices.

DKD quick assembly parts: Large pieces are modular, fast loading, balancing efficiency and cost.

The first choice for small and medium-sized foreign trade merchants: SKD is the main choice, CKD is the alternative, light assets, fast turnover, and the lowest risk.

2. Core dry goods: How to calculate the KD export price? A set of formulas is directly applied

1. Price composition (each item is omitted, each item is lost)

Procurement cost of spare parts (base price of KD package from the main engine factory)

Dismantling/packaging/domestic logistics fees

Customs declaration, commodity inspection, certification fees, sea transportation/insurance fees (calculated by cabinet)

Export tax refund (key deduction, auto parts tax refund rate of 13%)

Tariffs and customs clearance fees for individual parts in the target country

expected profit

2. The simplest quotation formula (copy directly)

FOB KD price =(cost of spare parts + domestic incidentals-tax refund) ÷ exchange rate + profit

CIF KD = FOB + sea freight + insurance

3. Must calculate the "tariff difference": This is KD's core source of profit

Import tariffs on complete vehicles: 30%~50%(high tariffs are common in Russia, the Middle East, Africa, and Latin America)

KD spare parts tariff: 5%~15%

A single unit ** saves 20% to 35%** tariffs, which is enough to cover dismantling + logistics, and can still make more money.

3. Three major principles for pricing small and medium-sized foreign trade merchants: no price adjustment and only steady profits

1. Lock costs first, then quote prices

The real reserve price must be calculated based on tax-inclusive cost-tax refund, and don't use the bare car price to falsely declare it.

2. Exchange rate leaves a safe cushion

Quotation exchange rate = spot exchange rate **-3% to 5%** Buffer to avoid fluctuations and swallow profits.

3. Batch ladder quotation

Small orders ensure profits, large orders are scaled, and the minimum order quantity is exchanged for a lower purchase price.

4. The four pits that are most likely to lose money. Avoiding it means making money

1. Compare only the total price, not the included items

Others report bare bags, but you report certified and packaged bags. It may seem expensive, but it is actually a loss.

2. Miscalculation of customs clearance and localized document fees at the port of destination

Africa, the Middle East, and Latin America require certificate of origin and ECE/EAC certification, and the fees are included in advance.

3. Packaging fails to meet standards leading to damage

KD parts must be rust-proof, moisture-proof, classified and coded, and the rework cost is more expensive than the parts.

4. The contract does not have exchange rate protection clauses

Agreed * ±3%~5%* fluctuations will be shared, and long orders must be added

5. Implementation recommendations for small and medium-sized car dealers in 2026

Give priority to SKD, avoid heavy assets CKD, and make capital turnover faster.

Bind 1 or 2 OEMs to stabilize KD package sources and get the reserve price for centralized procurement.

Focusing on high-tariff markets (Russia, the Middle East, Africa, Latin America), the tariff difference is the profit difference.

The quotation is clear and transparent: it lists parts, packaging, logistics, tax refund, and profits, and customers will trust them more.

For automobile exports in 2026, the price of the whole vehicle will be fought, and the profit will be fought for KD. For small and medium-sized foreign traders, KD is not an option, but a must-have option to survive and earn more. By calculating pricing clearly and controlling risks in place, small funds can also make large orders and steadily enjoy overseas dividends.

Source: Automobile export price

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