HS Code:
The category 'Of a cylinder capacity not exceeding 2,000 cc' typically refers to motor vehicles, primarily passenger cars, with engines that have a cylinder capacity of 2,000 cubic centimeters or less. This category falls under HS Code 8703.22 (for petrol engines) and 8703.31 (for diesel engines) in the Harmonized System nomenclature. These vehicles are generally compact or mid-sized cars, popular for personal use due to their fuel efficiency and lower cost compared to larger vehicles. This segment is a significant part of the global automotive trade, driven by demand in both developed and emerging markets for affordable and environmentally friendly transportation options.
Total Trade Volume
USD 120 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 30 billion
25% of total trade of total trade
Increasing
USD 25 billion
20.8% of total trade of total trade
Stable
USD 15 billion
12.5% of total trade of total trade
Increasing
USD 10 billion
8.3% of total trade of total trade
Stable
USD 8 billion
6.7% of total trade of total trade
Increasing
Average Rate
8.5% ad valorem
Highest Rate
25% (applied 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 within the 2,000 cc segment
Traditional internal combustion engine vehicles face declining demand in favor of eco-friendly alternatives, especially in Europe and China, pushing manufacturers to innovate.
2021-2022
Rising demand in emerging markets
Countries in Southeast Asia and Africa are seeing increased imports of small-capacity vehicles due to growing middle-class populations and urbanization.
2020-2022
Supply chain disruptions impacting production
Global semiconductor shortages and logistical challenges have reduced export volumes temporarily, affecting trade flows from major producers like Japan and South Korea.
2021-2022
The European Union introduced new Euro 7 emission standards, affecting the import and production of vehicles with cylinder capacities not exceeding 2,000 cc, pushing manufacturers to focus on cleaner technologies.
July 2023
Increased production costs for exporters to the EU; potential decline in traditional petrol/diesel vehicle exports.
The United States-Mexico-Canada Agreement has facilitated tariff-free trade of small-capacity vehicles within the region, benefiting manufacturers in Mexico and the US.
January 2023
Strengthened regional supply chains and increased exports from Mexico to the US and Canada.
Japan signed trade agreements with several ASEAN countries to reduce tariffs on vehicles under 2,000 cc, aiming to capture growing demand in the region.
March 2023
Significant rise in Japanese exports to Indonesia, Thailand, and Vietnam.