HS Code:
Half-shafts, also known as axle shafts, are critical components in automotive drivetrains, primarily used to transmit torque from the differential to the wheels. Falling under HS Code 8708.50 (Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof), this category includes both complete half-shaft assemblies and their parts. They are essential for front-wheel-drive, all-wheel-drive, and certain rear-wheel-drive vehicles. The global trade of half-shafts is driven by the automotive industry's demand, influenced by production hubs, technological advancements in electric vehicles (EVs), and regional manufacturing capabilities.
Total Trade Volume
Approximately $15.2 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$3.1 billion USD
20.4% of total trade of total trade
Increasing
$2.8 billion USD
18.4% of total trade of total trade
Stable
$1.9 billion USD
12.5% of total trade of total trade
Increasing
$1.5 billion USD
9.9% of total trade of total trade
Increasing
$1.2 billion USD
7.9% of total trade of total trade
Increasing
Average Rate
4.5% ad valorem
Highest Rate
10% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Rising demand for electric vehicle (EV) components
Increased need for specialized half-shafts designed for EV powertrains, driving innovation and trade in high-performance materials.
2021-2023
Shift in supply chains due to geopolitical tensions
Diversification of sourcing away from single-country dependency, with growth in manufacturing in Mexico and Eastern Europe.
2020-2022
Adoption of lightweight materials
Growing use of advanced composites and alloys in half-shaft production to improve fuel efficiency, influencing cost and trade patterns.
2019-2023
The United States-Mexico-Canada Agreement (USMCA) has reduced tariffs on automotive parts, including half-shafts, fostering increased trade within the region.
July 2020
Strengthened supply chains in North America, with Mexico emerging as a key exporter to the U.S. market.
The European Union's Green Deal has introduced stricter emissions and sustainability standards, pushing manufacturers to adopt eco-friendly production methods for half-shafts.
January 2021
Increased costs for compliance but opened new markets for sustainable automotive components in Europe.
China's rapid expansion in electric vehicle production has led to a surge in half-shaft exports tailored for EV applications.
March 2022
Positioned China as a competitive supplier in the global market, particularly for EV-specific components.