HS Code:
The category of self-propelled railway or tramway coaches, vans, and trucks (HS Code: 8603) includes vehicles designed for the transport of passengers or goods on railways or tramways, which are powered by their own engines (electric, diesel, or other). This category excludes maintenance or service vehicles covered under HS Code 8604. These vehicles are integral to urban and intercity transport systems, including electric multiple units (EMUs), diesel multiple units (DMUs), and other self-propelled railcars. The global trade of these products is influenced by urbanization, infrastructure development, and the push for sustainable transport solutions.
Total Trade Volume
USD 15.2 billion
Data from 2022
Source
United Nations Comtrade Database
Average Rate
5.2%
Highest Rate
12% (applied by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA or within customs unions like the EU)
Shift towards electrification
Increased demand for electric self-propelled railcars due to environmental regulations and sustainability goals, driving trade in EMUs and battery-powered units.
2020-2022
Urbanization in developing economies
Rising demand for metro and suburban rail systems in Asia and Africa, boosting exports from major manufacturers like China and South Korea.
2018-2022
Technological advancements
Integration of smart technologies and automation in railcars is increasing production costs but also opening new markets for high-tech exporters like Germany and Japan.
2021-2023
China has expanded its export of self-propelled railway coaches to countries involved in the Belt and Road Initiative, securing major contracts for high-speed and urban rail projects in Southeast Asia and Africa.
March 2023
Strengthens China’s dominance in the global market, potentially increasing trade tensions with competitors like the EU.
The European Union has allocated significant funds under the Green Deal to modernize rail infrastructure, leading to increased demand for sustainable self-propelled railcars from domestic manufacturers like Alstom (France) and Siemens (Germany).
June 2022
Boosts intra-EU trade and supports local industries, while potentially reducing imports from non-EU countries.
The United States reviewed tariffs on certain railway components and self-propelled coaches as part of trade negotiations, aiming to balance domestic production with the need for cost-effective imports.
September 2023
May influence sourcing decisions for US rail operators, with potential benefits for exporters like South Korea if tariffs are lowered.