HS Code:
The 'Inflators and Modules for Airbags' category, classified under HS Code 8708.95, includes components critical to vehicle safety systems. These products are primarily used in the automotive industry to ensure the proper deployment of airbags during collisions. This category encompasses both the inflator units, which generate the gas to inflate the airbag, and the complete airbag modules that integrate the inflator, airbag, and sometimes electronic components for deployment. Global demand for these products is driven by increasing vehicle production, stringent safety regulations, and growing consumer awareness of automotive safety features.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 3.2 billion
25.6% of total trade of total trade
Increasing
USD 2.1 billion
16.8% of total trade of total trade
Stable
USD 1.8 billion
14.4% of total trade of total trade
Increasing
USD 1.5 billion
12.0% of total trade of total trade
Increasing
USD 1.0 billion
8.0% of total trade of total trade
Increasing
Average Rate
4.5% ad valorem
Highest Rate
10% (applied by certain developing countries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Rising demand due to stricter safety regulations
Increased production and trade as governments worldwide mandate airbag installation in all new vehicles
2020-2022
Shift towards advanced airbag systems
Growth in demand for smart inflators and multi-stage airbag modules to cater to autonomous and electric vehicles
2021-2023
Supply chain disruptions
Delays and cost increases due to semiconductor shortages and logistical challenges affecting production
2021-2022
A major airbag inflator manufacturer faced a global recall of over 10 million units due to defective components, impacting several automakers.
January 2023
Increased scrutiny on quality control and potential short-term trade decline for affected suppliers
The European Union introduced updated regulations mandating advanced airbag systems in all new vehicles starting from 2024.
July 2022
Boost in demand for next-generation airbag modules and inflators in the European market
Recent amendments to trade agreements reduced tariffs on automotive safety components, including airbag inflators, between the US and China.
March 2023
Expected increase in trade volume between the two countries, benefiting Chinese exporters