HS Code:
The category 'With a net engine power of 257.4 kW or more' typically falls under HS Code 8408.20, which includes compression-ignition internal combustion piston engines (diesel or semi-diesel engines) used for the propulsion of vehicles. This category is crucial in industries such as heavy machinery, commercial vehicles, and marine applications, where high-powered engines are required for demanding tasks. These engines are known for their durability, fuel efficiency, and ability to handle heavy loads, making them essential in global trade for transportation and industrial sectors.
Total Trade Volume
USD 12.5 billion
Data from 2022
Source
United Nations Comtrade Database
USD 3.2 billion
25.6% of total trade of total trade
Increasing
USD 2.8 billion
22.4% of total trade of total trade
Stable
USD 1.9 billion
15.2% of total trade of total trade
Increasing
USD 1.5 billion
12.0% of total trade of total trade
Increasing
USD 0.9 billion
7.2% of total trade of total trade
Stable
Average Rate
5.2%
Highest Rate
12.5% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Shift towards cleaner diesel technologies
Increased demand for engines meeting stringent emission norms like Euro VI and EPA Tier 4, driving innovation and higher production costs.
2020-2022
Rising demand in developing economies
Growing infrastructure projects in Asia and Africa have boosted the need for heavy machinery and high-power engines.
2019-2022
Transition to hybrid and electric alternatives
Gradual reduction in long-term demand for traditional diesel engines as industries adopt sustainable technologies.
2021-2023
The European Union implemented stricter Euro VII standards for diesel engines, requiring manufacturers to invest in advanced emission control technologies.
January 2023
Increased production costs for manufacturers but improved market access for compliant companies.
A new phase of the US-China trade agreement reduced tariffs on high-power diesel engines, facilitating smoother trade flows between the two countries.
March 2022
Boosted exports from China to the US, potentially increasing competition for domestic manufacturers.
Major manufacturers like Cummins and Volvo announced significant investments in low-emission diesel technologies to align with global sustainability goals.
September 2022
Long-term shift towards eco-friendly engines, potentially reshaping market dynamics.