HS Code:
The category of vehicles with a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc (commonly associated with HS Code 8703.22) includes primarily passenger cars and other motor vehicles designed for the transport of persons. This segment typically covers compact and subcompact cars, which are popular for personal and family use due to their fuel efficiency and affordability. These vehicles are a significant part of the global automotive market, balancing performance and cost, and are often subject to varying tariffs and trade regulations based on environmental standards and regional trade agreements.
Total Trade Volume
USD 45.6 billion
Data from 2022
Source
United Nations Comtrade Database
USD 12.3 billion
27% of total trade of total trade
Increasing
USD 8.9 billion
19.5% of total trade of total trade
Stable
USD 6.2 billion
13.6% of total trade of total trade
Increasing
USD 5.1 billion
11.2% of total trade of total trade
Decreasing
USD 3.8 billion
8.3% of total trade of total trade
Increasing
Average Rate
8.5%
Highest Rate
25% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift towards hybrid and electric alternatives
Decreasing demand for traditional internal combustion engine vehicles in this category in developed markets
2021-2022
Rising production in emerging markets
Increased exports from countries like Mexico and India due to lower production costs
2020-2022
Stricter emission regulations
Manufacturers adapting to meet Euro 6 and similar standards, affecting trade to regions with stringent rules
2019-2022
Further reduction in tariffs for Japanese vehicles entering the EU market, boosting trade in this category.
January 2023
Expected increase in Japanese exports by 5-7% in 2023-2024.
New regional value content requirements under USMCA affecting vehicle production and trade between the US, Mexico, and Canada.
July 2022
Potential short-term disruptions for manufacturers in North America, with a shift towards local sourcing.
Introduction of stricter China 6b emission standards, impacting imports of vehicles in this category.
December 2022
Manufacturers need to adapt or face reduced market access, potentially benefiting local producers.