HS Code:
This category includes vehicles classified under HS Codes related to subheadings 8701.21 to 8701.29 (tractors and similar vehicles), and headings 8702 (public transport vehicles), 8703 (passenger motor vehicles), and 8704 (goods transport vehicles). These codes cover a wide range of motor vehicles designed for various purposes, including personal transport, commercial use, and industrial applications. This segment is a critical component of global trade due to the high demand for automobiles and commercial vehicles across markets, driven by economic growth, urbanization, and industrial activities.
Total Trade Volume
USD 1.2 trillion
Data from 2022
Source
United Nations Comtrade Database
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
Stable
Average Rate
8.5%
Highest Rate
25% (imposed by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Rise in Electric Vehicle (EV) Adoption
Significant shift in trade patterns with increased exports of EVs and components, particularly from China and Europe, impacting traditional internal combustion engine vehicle markets.
2021-2023
Supply Chain Disruptions
Global semiconductor shortages and logistical challenges have slowed vehicle production and exports, leading to higher prices and delayed deliveries.
2020-2022
Regionalization of Trade
Increased focus on regional trade agreements (e.g., USMCA, RCEP) has led to more localized supply chains, reducing dependency on long-distance imports.
2019-2023
The European Union introduced tighter CO2 emission regulations for vehicles under headings 8703 and 8704, pushing manufacturers to accelerate EV production and impacting trade flows of traditional vehicles.
January 2023
Increased imports of EV components and batteries, potential decline in exports of conventional vehicles to the EU.
Ongoing trade disputes have led to higher tariffs on Chinese-made vehicles and parts exported to the US, prompting a shift in supply chains to other Asian countries.
Mid-2022
Reduced trade volume between the US and China, growth in imports from South Korea and Japan.
India introduced incentives under the 'Make in India' initiative, imposing higher tariffs on imported vehicles while offering subsidies for local production.
April 2023
Decline in vehicle imports to India, growth in domestic production and potential for future exports.