HS Code:
The category 'Vehicles other than railway or tramway rolling stock, and parts and accessories thereof' (HS Code 87) encompasses a wide range of motor vehicles, including passenger cars, commercial vehicles, motorcycles, bicycles, and their respective parts and accessories. This category is a cornerstone of global trade, representing a significant portion of industrial and consumer goods exchanged worldwide. It includes products critical to personal and commercial transportation, such as engines, tires, and other components essential for vehicle assembly and maintenance. The trade in this category is driven by consumer demand, industrial production capacities, and advancements in automotive technology, including electric and hybrid vehicles.
Total Trade Volume
USD 1.5 trillion
Data from 2022
Source
United Nations Comtrade Database
USD 250 billion
16.7% of total trade of total trade
Increasing
USD 180 billion
12.0% of total trade of total trade
Stable
USD 150 billion
10.0% of total trade of total trade
Increasing
USD 120 billion
8.0% of total trade of total trade
Increasing
USD 80 billion
5.3% of total trade of total trade
Stable
Average Rate
8.5%
Highest Rate
35% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA or USMCA)
Shift to Electric Vehicles (EVs)
Significant increase in trade of EV components and batteries, with countries like China and South Korea leading in battery exports. Traditional internal combustion engine (ICE) vehicle trade is declining in favor of sustainable alternatives.
2020-2022
Supply Chain Disruptions
Global semiconductor shortages and logistical challenges have slowed vehicle production and trade, leading to higher prices and delayed deliveries in major markets.
2021-2022
Regional Production Hubs
Countries in Southeast Asia and Eastern Europe are emerging as key production hubs for automotive parts, driven by lower labor costs and proximity to major markets like China and the EU.
2019-2022
The European Union's Green Deal policies are pushing for stricter emission standards, incentivizing the import of electric and hybrid vehicles while imposing higher tariffs on high-emission vehicles.
January 2023
Increased trade in EVs and components from countries with advanced green technology, potential decline in traditional vehicle exports to the EU.
Ongoing trade tensions have led to additional tariffs on Chinese automotive parts imported into the US, prompting manufacturers to diversify supply chains to countries like Vietnam and Mexico.
Mid-2022
Shift in trade patterns, with reduced Chinese exports to the US and growth in alternative supplier markets.
Countries are investing heavily in domestic semiconductor production to reduce reliance on Asian suppliers, critical for modern vehicle electronics.
Late 2022
Potential long-term stabilization of automotive supply chains, though short-term trade disruptions may persist.