HS Code:
The category under HS Code 8704.21 and 8704.31 pertains to motor vehicles for the transport of goods, specifically diesel or semi-diesel powered vehicles with a gross vehicle weight not exceeding 5 tonnes (subheading 8704.21) and gasoline-powered vehicles of the same weight capacity (subheading 8704.31). These vehicles are commonly used for commercial purposes, including delivery vans, light trucks, and utility vehicles, playing a critical role in logistics and supply chain operations across various industries.
Total Trade Volume
USD 25.6 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
6.5%
Highest Rate
25% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Shift towards electric and hybrid light commercial vehicles
Growing demand for eco-friendly alternatives is pushing manufacturers to innovate, though diesel vehicles still dominate due to cost and infrastructure advantages in many regions.
2022
Increased demand in e-commerce logistics
The boom in online shopping has led to higher demand for light trucks and delivery vans, especially in urban areas, driving trade volumes upward.
2021-2022
Supply chain disruptions impacting production
Semiconductor shortages and logistical bottlenecks have slowed production and export of vehicles in this category, leading to price increases.
2021-2023
The European Union introduced tighter emission regulations for commercial vehicles under the Euro 6d standard, affecting imports of diesel-powered vehicles in the 8704.21 category.
January 2023
Non-compliant vehicles face higher tariffs or market exclusion, pushing exporters to adapt to greener technologies.
Revised rules of origin under the USMCA (United States-Mexico-Canada Agreement) have increased local content requirements for vehicles, impacting trade flows of light trucks in North America.
July 2022
Manufacturers in the region are adjusting supply chains to meet the new thresholds, potentially increasing costs but boosting regional trade.
Thailand has emerged as a key exporter of light commercial vehicles to ASEAN countries, supported by regional trade agreements and competitive production costs.
March 2023
Strengthened trade ties within ASEAN are increasing Thailand’s market share in this category, challenging traditional exporters like Japan.