HS Code:
The category 'Of a cylinder capacity exceeding 2,000 cc' typically falls under HS Code 8703 or 8704, depending on whether the vehicles are primarily for the transport of persons or goods. This category includes motor vehicles such as passenger cars, SUVs, and light trucks with internal combustion engines exceeding 2,000 cubic centimeters. These vehicles are often associated with higher power output and are used for both personal and commercial purposes. Trade in this category is influenced by factors such as fuel efficiency standards, emission regulations, consumer preferences for larger vehicles, and regional manufacturing capabilities.
Total Trade Volume
USD 120 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
Average Rate
8.5%
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or USMCA)
Shift towards hybrid and electric vehicles
Demand for traditional internal combustion engine vehicles exceeding 2,000 cc is facing pressure as governments push for greener alternatives with stricter emission norms.
2021-2023
Rising demand in emerging markets
Countries in Asia and Africa are seeing increased demand for larger vehicles due to growing middle-class populations and infrastructure development.
2020-2022
Supply chain disruptions
Global semiconductor shortages and logistic challenges have slowed production and export of vehicles in this category, leading to price increases.
2021-2022
The European Union has implemented stricter CO2 emission targets for vehicles, pushing manufacturers to reduce production of high-capacity internal combustion engines.
January 2023
Likely to reduce exports of vehicles exceeding 2,000 cc to the EU market while increasing focus on hybrid alternatives.
The United States-Mexico-Canada Agreement has facilitated tariff-free trade of vehicles meeting regional content requirements, boosting trade among member countries.
July 2020 (ongoing impact in 2023)
Increased trade volume for vehicles exceeding 2,000 cc among North American countries, especially benefiting Mexico’s export market.
China has introduced subsidies and incentives for domestic manufacturers of large vehicles to reduce reliance on imports.
March 2022
Potential reduction in imports of foreign vehicles exceeding 2,000 cc into China, affecting major exporters like Germany and Japan.