HS Code:
The category 'Having a power handling capacity not exceeding 650 kVA' falls under HS Code 8502.11.00, which pertains to electric generating sets and rotary converters with a power handling capacity not exceeding 650 kVA. These are typically diesel or gas-powered generators used in various applications, including backup power for small to medium-sized facilities, construction sites, and remote locations. This category is critical for industries requiring reliable off-grid power solutions and is widely traded globally due to varying regional energy demands and infrastructure capabilities.
Total Trade Volume
USD 2.8 billion
Data from 2022
Source
United Nations Comtrade Database
USD 750 million
26.8% of total trade
Increasing
USD 450 million
16.1% of total trade
Stable
USD 380 million
13.6% of total trade
Increasing
USD 300 million
10.7% of total trade
Stable
USD 250 million
8.9% of total trade
Increasing
Average Rate
5.2%
Highest Rate
15% (applied by certain developing countries to protect local manufacturing)
Lowest Rate
0% (under free trade agreements like EU internal trade or USMCA)
Rising demand for portable and small-scale generators
Increased trade volume in developing regions with unreliable power grids, driving exports from major manufacturing hubs like China and India.
2021-2022
Shift towards sustainable energy solutions
Growing interest in hybrid and solar-integrated generators, slightly reducing demand for traditional diesel units in eco-conscious markets like Europe.
2020-2022
Supply chain disruptions due to geopolitical tensions
Price volatility and delays in delivery impacting trade flows, particularly in regions dependent on imports from Asia.
2022
The European Union introduced stricter emission regulations for diesel generators under 650 kVA, requiring manufacturers to adapt to cleaner technologies or face market access restrictions.
January 2023
Increased production costs for exporters to the EU; potential shift in market share towards compliant manufacturers in Germany and Italy.
The United States imposed an additional 10% tariff on Chinese-made generators under 650 kVA as part of ongoing trade negotiations, aiming to reduce dependency on Chinese imports.
March 2023
Possible diversification of US import sources to countries like India and Vietnam, affecting China's dominance in this category.
India launched incentives for domestic manufacturers of power equipment, including generators under 650 kVA, to boost exports under the 'Make in India' initiative.
July 2022
Strengthened Indiaโs position in the global market, with a notable increase in exports to Africa and Southeast Asia.