HS Code:
This category pertains to new gear boxes specifically designed for vehicles classified under headings 8702 (motor vehicles for the transport of ten or more persons) or 8704 (motor vehicles for the transport of goods). These gear boxes are characterized by having six speeds and a peak torque rating ranging from 69 kg-m to 110 kg-m. Classified under HS subheading 8708.40.11, these components are critical for the performance and efficiency of heavy-duty and commercial vehicles, impacting fuel efficiency, power delivery, and overall vehicle durability.
Total Trade Volume
Approximately $2.5 billion USD
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
$600 million USD
24% of total trade of total trade
Increasing
$450 million USD
18% of total trade of total trade
Stable
$400 million USD
16% of total trade of total trade
Increasing
$350 million USD
14% of total trade of total trade
Increasing
$200 million USD
8% of total trade of total trade
Stable
Average Rate
4.5% ad valorem
Highest Rate
10% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Shift towards automated manual transmissions (AMT)
Increasing demand for gear boxes compatible with AMT systems in commercial vehicles to enhance fuel efficiency and driver comfort.
2021-2023
Rising production of electric and hybrid commercial vehicles
Potential reduction in demand for traditional gear boxes as electric vehicles often use single-speed or direct-drive systems.
2022-2025
Supply chain disruptions due to geopolitical tensions
Increased costs and delays in gear box production and trade, pushing manufacturers to diversify supply chains.
2020-2023
The European Union introduced new emission regulations affecting commercial vehicles, necessitating gear boxes that support fuel-efficient powertrains.
January 2023
Manufacturers are investing in R&D to develop compliant gear boxes, potentially increasing production costs but also opening new market opportunities.
A new phase of trade negotiations reduced tariffs on automotive components, including gear boxes, between the US and China.
March 2023
This is expected to boost trade volume for gear boxes, benefiting exporters in both countries and stabilizing prices.
A leading German manufacturer announced a new production facility in Thailand to cater to the growing Southeast Asian market for commercial vehicles.
June 2023
This development is likely to increase regional supply, reduce lead times, and lower costs for Asian markets.