HS Code:
The 'Exceeding 500 cc but not exceeding 700 cc' category typically refers to internal combustion engines or motorcycles with engine capacities between 500 and 700 cubic centimeters, often classified under HS Code 8711.30 for motorcycles or 8407.33 for reciprocating piston engines. This category is significant in the global trade of mid-range motorcycles and engine components, catering to both recreational and commuting purposes. Products in this range are popular for their balance of power and fuel efficiency, appealing to markets in both developed and emerging economies.
Total Trade Volume
USD 3.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
8.5%
Highest Rate
35% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rising demand for mid-range motorcycles in emerging markets
Increased exports from manufacturing hubs like India and Thailand to Africa and Southeast Asia due to affordability and utility.
2021-2022
Shift towards electric alternatives
Growing interest in electric motorcycles may reduce long-term demand for internal combustion engines in this category, especially in Europe.
2022
Stricter emission regulations
Manufacturers are compelled to innovate with cleaner engines, increasing production costs but also opening niche markets for compliant products.
2020-2022
The European Union implemented Euro 5 standards for motorcycles, affecting imports of non-compliant models in the 500-700 cc range.
January 2021
Increased costs for exporters to the EU; boosted demand for compliant models from Japan and Italy.
The Indian government introduced export incentives under the PLI scheme to boost motorcycle exports, including the 500-700 cc category.
September 2021
Significant rise in Indian exports, particularly to African and Latin American markets.
Ongoing trade tensions have led to higher tariffs on Chinese components used in motorcycle assembly, indirectly affecting this category.
Mid-2022
Shift in supply chains towards ASEAN countries like Thailand and Vietnam for sourcing parts.