HS Code:
This category pertains to motor vehicles for the transport of goods with a Gross Vehicle Weight (G.V.W.) exceeding 5 metric tons but not exceeding 20 metric tons, classified under HS Code 8704.22. These vehicles are typically medium-duty trucks used for commercial transportation of goods across various industries, including logistics, construction, and manufacturing. They are essential for regional and intra-city freight movement, balancing capacity and maneuverability.
Total Trade Volume
USD 15.3 billion
Data from 2022
Source
United Nations Comtrade Database & World Trade Organization (WTO)
Average Rate
8.5%
Highest Rate
25% (applied by certain developing economies to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift towards electric and hybrid medium-duty trucks
Increasing demand for eco-friendly vehicles due to stringent emission regulations in Europe and North America, driving innovation and market growth for sustainable models.
2021-2023
Rising demand in emerging markets
Rapid urbanization and infrastructure development in Asia and Africa are boosting the need for medium-duty trucks, expanding export opportunities for major manufacturers.
2020-2022
Supply chain disruptions
Global semiconductor shortages and logistic bottlenecks have delayed production and delivery, affecting trade volumes temporarily.
2021-2022
The European Union introduced stricter CO2 emission targets for medium-duty trucks, mandating a 30% reduction by 2030 compared to 2019 levels.
June 2023
Manufacturers are accelerating R&D for electric and hybrid models, potentially increasing costs but also opening new market segments.
Phase One trade agreement discussions included provisions to reduce tariffs on medium-duty vehicles, though implementation remains partial.
March 2023
Potential for increased US exports to China if tariffs are lowered, though geopolitical tensions may delay progress.
Japan and India signed a bilateral agreement to facilitate the export of Japanese medium-duty trucks with reduced tariffs.
September 2022
Strengthens Japan’s market share in South Asia, supporting infrastructure growth in India.