HS Code:
The category of vehicles with a cylinder capacity exceeding 3,000 cc (HS Code: 8703.24 for gasoline engines and 8703.33 for diesel engines) primarily includes high-performance passenger cars, luxury vehicles, and certain types of heavy-duty vehicles. These products are often associated with premium automotive brands and are traded globally in significant volumes due to demand in both developed and emerging markets for luxury and high-power vehicles. This category is subject to varying tariffs and trade policies due to environmental concerns, fuel efficiency standards, and luxury taxation.
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 9.8 billion
21.5% of total trade of total trade
Stable
USD 6.5 billion
14.3% of total trade of total trade
Increasing
USD 4.2 billion
9.2% of total trade of total trade
Stable
USD 3.1 billion
6.8% of total trade of total trade
Decreasing
Average Rate
8.5%
Highest Rate
35% (applied by certain developing countries as luxury tax)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Shift towards electric and hybrid vehicles
Declining demand for high-cylinder capacity internal combustion engine vehicles in favor of electric alternatives due to stricter emission regulations.
2021-2023
Growing demand in emerging markets
Increased exports to countries in Asia and the Middle East, driven by rising disposable incomes and preference for luxury vehicles.
2020-2022
Supply chain disruptions
Semiconductor shortages and logistical challenges have reduced production and export volumes temporarily.
2021-2022
The European Union introduced stricter CO2 emission targets for vehicles, impacting the production and export of vehicles exceeding 3,000 cc due to their higher carbon footprint.
January 2023
Manufacturers are pivoting towards hybrid technologies or facing higher compliance costs, potentially reducing trade volumes.
A new phase of trade negotiations between the US and China has led to a temporary reduction in tariffs on luxury vehicles, boosting exports of high-capacity vehicles to China.
March 2023
Increased trade volume to China, especially for American and German manufacturers.
Several Middle Eastern countries have reported a surge in demand for luxury vehicles, prompting manufacturers to establish regional distribution hubs.
June 2023
Significant growth in exports to the region, particularly from European manufacturers.