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 cars, trucks, buses, motorcycles, and their respective parts and accessories. This category is a critical component of global trade, reflecting industrial capabilities, consumer demand, and technological advancements in the automotive sector. It includes both finished vehicles and components used in manufacturing and repair, making it a key indicator of economic activity and supply chain dynamics worldwide.
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
5.2% ad valorem
Highest Rate
25% (imposed by certain developing countries on luxury vehicles)
Lowest Rate
0% (under free trade agreements such as EU-Japan EPA)
Rise of Electric Vehicles (EVs)
Significant shift in trade patterns with increased demand for EV components like batteries and charging infrastructure, leading to new market leaders and supply chains.
2020-2022
Supply Chain Disruptions
Global semiconductor shortages have hampered vehicle production, reducing export volumes and increasing costs for manufacturers and consumers.
2021-2022
Regionalization of Production
Manufacturers are increasingly localizing production to avoid tariffs and reduce shipping costs, impacting traditional export hubs.
2019-2022
The United States-Mexico-Canada Agreement (USMCA) introduced stricter rules of origin for automotive trade, requiring higher regional content for tariff-free access.
July 1, 2020
Shift in supply chains towards North American suppliers, increasing costs for some manufacturers but boosting regional production.
The European Union has rolled out aggressive policies to phase out internal combustion engine vehicles by 2035, with subsidies for EV production and purchases.
December 2021
Rapid growth in EV exports from Europe, alongside increased tariffs on non-compliant vehicles from other regions.
China has emerged as a leading exporter of electric vehicles, driven by government subsidies and advancements in battery technology.
Q3 2022
Increased competition in global markets, pressuring traditional automotive exporters like Japan and Germany.