HS Code:
This category includes vehicles under HS Codes related to subheadings 8701.21 to 8701.29 (tractors and road tractors for semi-trailers), and headings 8702 (public transport vehicles), 8703 (passenger motor vehicles), 8704 (goods transport vehicles), 8705 (special purpose vehicles), and 8711 (motorcycles). These codes cover a wide range of motor vehicles for personal, commercial, and specialized use, representing a significant portion of global trade in the automotive sector. The category includes both internal combustion engine and electric/hybrid vehicles, reflecting the evolving nature of transportation technology.
Total Trade Volume
USD 1.2 trillion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
USD 250 billion
20.8% of total trade of total trade
Increasing
USD 180 billion
15.0% of total trade of total trade
Stable
USD 150 billion
12.5% of total trade of total trade
Increasing
USD 120 billion
10.0% of total trade of total trade
Increasing
USD 80 billion
6.7% of total trade of total trade
Increasing
Average Rate
8.5% ad valorem
Highest Rate
35% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA or USMCA)
Shift to Electric Vehicles (EVs)
Increased demand for electric and hybrid vehicles under HS 8703, with significant growth in exports from China and Europe due to government incentives and stricter emission regulations.
2021-2023
Supply Chain Disruptions
Global semiconductor shortages have reduced production capacity, impacting trade volumes for passenger and commercial vehicles, particularly affecting Japan and the United States.
2021-2022
Rise of Autonomous Vehicles
Growing investment in autonomous technology for special purpose vehicles (HS 8705) is creating new trade niches, with the U.S. and Germany leading innovation.
2022-2023
The European Union introduced new tariffs and carbon border adjustment mechanisms targeting high-emission vehicles to encourage cleaner production practices.
July 2023
Likely to increase costs for exporters from countries with less stringent emission standards, while benefiting EU-based EV manufacturers.
Revised rules of origin under the USMCA have tightened requirements for regional content in vehicles traded between the U.S., Mexico, and Canada, affecting supply chains.
January 2023
Encourages regional production but poses challenges for Asian and European exporters relying on North American markets.
China has emerged as a leading exporter of electric vehicles under HS 8703, supported by government subsidies and competitive pricing strategies.
March 2023
Intensifies global competition, particularly challenging traditional automotive exporters like Japan and Germany.