HS Code:
This category, classified under HS Code 8703.80, includes other vehicles equipped with both a spark-ignition internal combustion piston engine and an electric motor as motors for propulsion, which can be charged by plugging into an external source of electric power. Commonly referred to as plug-in hybrid electric vehicles (PHEVs), these vehicles combine the benefits of internal combustion engines and electric propulsion, offering reduced emissions compared to traditional vehicles while providing greater range flexibility than fully electric vehicles. They are a significant segment in the global transition towards sustainable transportation, driven by environmental regulations, consumer demand for eco-friendly options, and advancements in battery technology.
Total Trade Volume
USD 25.6 billion
Data from 2022
Source
United Nations Comtrade Database
USD 6.2 billion
24.2% of total trade of total trade
Increasing
USD 5.1 billion
19.9% of total trade of total trade
Increasing
USD 3.8 billion
14.8% of total trade of total trade
Stable
USD 3.5 billion
13.7% of total trade of total trade
Increasing
USD 2.0 billion
7.8% of total trade of total trade
Increasing
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)
Rising demand for plug-in hybrids as a transition technology
Increased production and export volumes, especially from countries with strong automotive sectors like Germany and Japan, as consumers and governments prioritize lower-emission vehicles.
2021-2023
Government incentives and subsidies for PHEVs
Boosted trade volumes in markets with supportive policies (e.g., tax rebates, purchase subsidies), particularly in the EU and China, encouraging imports and local production.
2020-2022
Technological advancements in battery efficiency
Reduced costs and improved range for PHEVs, driving competitiveness and trade growth, especially from innovation hubs like South Korea and Japan.
2019-2023
The European Union implemented stricter CO2 emission targets for vehicles, pushing manufacturers to increase PHEV production and exports to meet regulatory requirements.
January 2023
Increased trade flows of PHEVs into the EU market, with Germany and other EU countries ramping up exports and imports.
The US introduced tax credits for plug-in hybrid vehicles under the Inflation Reduction Act, spurring demand for PHEVs and influencing trade patterns with key suppliers like Japan and South Korea.
August 2022
Boosted imports of PHEVs into the US, with potential for long-term growth in trade volume from Asian manufacturers.
China announced investments in expanding domestic production of plug-in hybrids to meet both local and export demand, positioning itself as a major player in the global market.
March 2023
Increased export potential from China, potentially reshaping global trade dynamics and intensifying competition with established exporters like Germany.