SKD & CKD — Local Assembly, Global Standards
Assembly Model
Hermi Group operates Semi-Knocked Down (SKD) and Complete-Knocked Down (CKD) vehicle assembly programmes in partnership with SG Automobile, the manufacturer of the Huanghai brand. Under this model, vehicle components are manufactured in China to the highest quality specifications, then shipped to in-country assembly plants where Hermi Group's local teams complete the build process.
This approach delivers multiple benefits simultaneously: it reduces import duties compared to fully assembled vehicles, creates skilled local employment, builds in-country technical capacity, and gives host governments a credible domestic production narrative — a critical factor in fleet procurement and public transport tenders.
SKD operations require a lighter capital investment and shorter setup timeline, making them well suited to markets entering vehicle production for the first time. CKD programmes demand more sophisticated local infrastructure but deliver deeper localisation ratios, greater cost competitiveness at volume, and stronger eligibility for government industrial incentives.
Hermi Group works closely with SG Automobile's engineering and production teams to ensure that locally assembled vehicles meet identical quality benchmarks to factory-built units — with full warranty coverage and standardised parts supply chains regardless of assembly location.
Three Production Lines
What We Build
Pickup Trucks
Single and double cab pickup trucks assembled from Huanghai-manufactured SKD kits. Available in diesel and electric drivetrains, our locally assembled pickup line serves agricultural, construction, utility, and light commercial customers. Local assembly makes these vehicles eligible for government fleet procurement under domestic production schemes and supports competitive pricing against fully imported alternatives.
Coaches
Intercity passenger coaches assembled in partnership with SG Automobile and configured for local regulatory requirements. Our coach line covers standard and luxury configurations suited to private intercity operators, government transport departments, and tourism fleet operators. Local assembly enables rapid customisation of interior specifications and livery to meet operator and tender requirements.
Low-Floor City Buses
Low-floor electric and diesel city buses designed for urban public transit networks. Assembled locally from Huanghai SKD/CKD kits, our city bus line delivers vehicles that meet accessibility standards, integrate with existing BRT and urban transit systems, and are optimised for the stop-start duty cycles of high-frequency city routes. These are the backbone vehicles for municipal public transport authority tenders.
Made Here. For Here.
Local Production Strategy
Establishing vehicle production in-country is a strategic commitment, not simply a cost optimisation. When Hermi Group assembles vehicles locally, we are building industrial capacity, upskilling workers, and embedding ourselves as a long-term contributor to the national economy — not just a trading intermediary.
Local production gives host governments a credible domestic manufacturing story when presenting fleet procurement programmes to parliaments and the public. It qualifies vehicles for local content preferences in tenders, reduces foreign exchange pressure on vehicle imports, and creates supply chain multiplier effects through local parts sourcing as programmes mature.
Our manufacturing model is designed to scale: what begins as an SKD operation can evolve into a CKD programme as volume justifies deeper investment, with a clear path toward higher localisation ratios and eventually, in select markets, partial component manufacturing. Hermi Group is prepared to be a long-term industrial partner, not a short-cycle trader.
3
Vehicle Lines in Production
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Assembly Formats — SKD & CKD
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Manufacturing Partner — SG Automobile
Ready to Build Together?
Whether you are a government seeking a local vehicle production partner, a transport authority tendering for buses, or an operator exploring large-scale fleet procurement with local assembly, our manufacturing team is ready to discuss what is possible.
Discuss a Manufacturing Project