HS Code:
The 'Not exceeding 149.2 kW' category typically refers to internal combustion engines, specifically diesel or semi-diesel engines, with a power output not exceeding 149.2 kilowatts. This category falls under HS Code 8408.20, often used in vehicles for the transport of goods or passengers. These engines are critical components in the automotive and industrial machinery sectors, balancing power and efficiency for medium-duty applications. Global trade in this category is influenced by automotive production hubs, fuel efficiency regulations, and the shift towards sustainable energy solutions.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.8%
Highest Rate
12% (imposed by certain developing economies to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift towards hybrid and electric alternatives
Declining demand for traditional diesel engines in developed markets due to stringent emission norms
2021-2022
Increased production in Asia-Pacific
Rising exports from China and India due to lower production costs and growing automotive sectors
2020-2022
Technological advancements in fuel efficiency
Sustained demand in markets prioritizing fuel-efficient medium-duty engines for logistics and transportation
2019-2022
The European Union introduced stricter Euro 7 emission standards, impacting the design and trade of diesel engines not exceeding 149.2 kW.
November 2022
Manufacturers are forced to innovate or face reduced market access in Europe, potentially increasing costs.
Phase 1 trade agreement between the US and China reduced tariffs on automotive components, including engines in this category.
January 2023
Boosted trade flows between the two countries, with a projected 10% increase in US imports from China.
Japan announced incentives for hybrid and electric vehicle components, indirectly affecting diesel engine demand.
March 2023
Potential long-term decline in domestic production and exports of diesel engines under 149.2 kW.