HS Code:
The category 'Exceeding 373 kW but not exceeding 746 kW' typically refers to diesel or semi-diesel engines under HS Code 8408.20, used primarily in heavy machinery, industrial applications, and large vehicles such as trucks and buses. This power range is critical for medium to heavy-duty applications, balancing efficiency and power output. These engines are integral to industries like transportation, construction, and agriculture, with demand influenced by global industrial activity and environmental regulations.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database
USD 850 million
26.6% of total trade
Increasing
USD 620 million
19.4% of total trade
Stable
USD 480 million
15.0% of total trade
Increasing
USD 350 million
10.9% of total trade
Increasing
USD 200 million
6.3% of total trade
Stable
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Shift towards cleaner diesel technologies
Increased demand for engines meeting stringent emission standards like Euro VI, driving innovation and higher production costs.
2021-2022
Growth in construction and mining sectors in Asia-Pacific
Higher demand for heavy machinery engines in the 373-746 kW range, boosting exports to countries like China and India.
2022
Rising adoption of hybrid and electric alternatives
Potential long-term decline in diesel engine demand as industries transition to sustainable power sources.
2020-2023
The European Union introduced stricter Euro VII standards, mandating lower NOx and particulate matter emissions for diesel engines in the 373-746 kW range.
April 2023
Manufacturers face higher compliance costs, potentially increasing engine prices, while non-compliant exporters may lose market access.
Ongoing negotiations aim to reduce tariffs on industrial machinery components, including diesel engines, to improve bilateral trade.
September 2023
Potential reduction in trade barriers could boost US exports to China, increasing competition in the Asia-Pacific market.
Japan announced subsidies for R&D in low-emission diesel engines as part of its 2050 carbon neutrality goal.
January 2023
Japanese manufacturers may gain a competitive edge with advanced, eco-friendly engines in this power category.