HS Code:
The 'Other, with only spark-ignition internal combustion piston engine' category (HS Code: 8407.34) includes reciprocating piston engines of a kind used for the propulsion of vehicles, specifically those with spark-ignition mechanisms and a cylinder capacity exceeding 1000 cc. These engines are primarily used in automobiles and other motor vehicles, representing a critical component in the automotive supply chain. This category excludes engines used in aircraft or marine vessels and focuses on land vehicle applications. The global trade of these engines is influenced by automotive production hubs, technological advancements in engine efficiency, and environmental regulations driving demand for cleaner combustion technologies.
Total Trade Volume
USD 15.3 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.8 billion
24.8% of total trade of total trade
Increasing
USD 2.9 billion
19.0% of total trade of total trade
Stable
USD 2.1 billion
13.7% of total trade of total trade
Increasing
USD 1.5 billion
9.8% of total trade of total trade
Increasing
USD 1.2 billion
7.8% of total trade of total trade
Stable
Average Rate
4.5% ad valorem
Highest Rate
10% (imposed by certain developing economies)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Japan EPA)
Shift towards fuel-efficient engines
Increased demand for engines meeting stringent emission norms like Euro 6 and EPA standards, pushing manufacturers to innovate.
2021-2022
Rise of hybrid vehicle production
Moderate growth in spark-ignition engine trade as hybrid systems combine internal combustion with electric powertrains.
2020-2022
Supply chain disruptions due to geopolitical tensions
Delays in engine shipments and higher costs due to raw material shortages and trade barriers.
2022
The European Union introduced stricter CO2 emission limits for internal combustion engines under the Euro 7 standard, affecting engine design and trade.
April 2023
Increased production costs for exporters to the EU market; potential trade decline for non-compliant manufacturers.
The United States-Mexico-Canada Agreement has reduced tariffs on automotive components, including spark-ignition engines, fostering regional trade.
January 2023
Strengthened trade flows within North America, with Mexico and the US seeing higher export volumes.
Japan announced significant R&D investments in high-efficiency spark-ignition engines to maintain global competitiveness.
September 2022
Expected to reinforce Japan’s dominance in this category with advanced, eco-friendly engine models.