Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model

Eric · May 18, 2020 09:13 PM

Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model 01

Earlier today, Volvo Car Malaysia introduced the locally-assembled (CKD) Volvo S60, roughly seven months after the imported (CBU) model was introduced here.

Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model 02

The USA-made S60 was sold at RM 295,888

If you were expecting the locally-assembled S60 to be priced lower than the USA-made model, sorry to burst your bubble as that is not the case.

Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model 03

The Volvo S60 CKD is priced from RM 295,888 (on-the-road, without insurance), identical to the USA-made model.

Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model 01

The reason is less about the CKD version being cheaper and more about the fact that Volvo Car Malaysia has managed to secure duty exemptions from the Malaysian Government for the USA-made CBU units on the condition that they will meet a certain production quota.

As such, the S60 CBU is priced rather competitively for what it is - a feature-laden compact executive sedan that has plenty of grunt under the hood. In fact, if you want an S60 CBU, you can get a pre-reg unit with a rather massive discount. 

Why the 2020 Volvo S60 CKD isn’t cheaper than the CBU model 02

Volvo Car Malaysia actually commenced local assembly of the S60 a couple of months ago, as the company began exporting the made-in-Malaysia S60 to Thailand back in February. The model was supposed to be launched in Malaysia back in March, but got delayed due to the Covid-19 pandemic.

Eric

Editor

Started from the IT industry but somehow managed to find his way into the automotive industry. If he’s not gaming, he’s constantly tinkering with his daily/weekend car.

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Up to 20% higher than average trade-in price

2019 Volvo S60 T6

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