HS Code:
The category 'G.V.W. not exceeding 2.5 metric tons' typically refers to motor vehicles for the transport of goods with a gross vehicle weight (G.V.W.) not exceeding 2.5 metric tons. This category falls under HS Code 8704.21 (for diesel or semi-diesel engines) or similar subheadings under HS 8704, depending on the type of engine. These vehicles are primarily light commercial vehicles, such as pickup trucks and small vans, widely used for logistics, small-scale freight, and urban delivery services. This category is critical for industries requiring cost-effective and versatile transport solutions, particularly in developing economies and urban environments.
Total Trade Volume
USD 25.6 billion
Data from 2022
Source
UN Comtrade Database, International Trade Centre (ITC)
USD 5.2 billion
20.3% of total trade of total trade
Increasing
USD 4.8 billion
18.8% of total trade of total trade
Stable
USD 3.9 billion
15.2% of total trade of total trade
Increasing
USD 3.5 billion
13.7% of total trade of total trade
Stable
USD 1.8 billion
7.0% of total trade of total trade
Increasing
Average Rate
8.5% ad valorem
Highest Rate
25% (applied by certain developing countries to protect local industries)
Lowest Rate
0% (under free trade agreements like USMCA or EU-Japan EPA)
Shift towards electric and hybrid light commercial vehicles
Increasing demand for eco-friendly vehicles due to stricter emission regulations in Europe and North America, potentially reducing trade in traditional diesel models.
2022-2023
Growth in e-commerce and last-mile delivery
Surging demand for small commercial vehicles under 2.5 tons in urban areas, boosting exports from manufacturing hubs like Thailand and Mexico.
2021-2023
Supply chain disruptions and semiconductor shortages
Temporary decline in production and export volumes due to global supply chain issues, particularly affecting Japan and the United States.
2021-2022
Thailand introduced subsidies and tax breaks for electric vehicle production, including light commercial vehicles under 2.5 tons, to position itself as a regional EV manufacturing hub.
March 2022
Expected to increase Thailand's export share in this category, particularly for electric models, over the next 5 years.
The European Union proposed the Euro 7 emission standards, which will apply to light commercial vehicles starting in 2025, imposing stricter limits on pollutants.
November 2022
May increase production costs for exporters to the EU market, potentially affecting trade volumes from non-compliant manufacturers.
The United States-Mexico-Canada Agreement (USMCA) continues to facilitate tariff-free trade of light commercial vehicles among member countries, boosting Mexico's exports to the U.S.
Ongoing since July 2020
Strengthens Mexico's position as a key exporter in this category, especially to North American markets.