HS Code:
This category, typically falling under HS Code 8703 or 8704 (depending on specific use), includes vehicles or machinery with a net engine power of 93.3 kW or more but less than 119.4 kW. This range often encompasses medium-duty vehicles such as certain types of trucks, agricultural machinery, or industrial equipment. These products are critical in industries like transportation, construction, and agriculture, where engine power in this range meets the demand for robust yet cost-effective machinery. Global trade in this category is influenced by factors such as fuel efficiency standards, emission regulations, and industrial demand in both developed and emerging markets.
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
6.5%
Highest Rate
25% (imposed by certain developing countries to protect domestic industries)
Lowest Rate
0% (under free trade agreements like EU-Japan EPA)
Shift towards hybrid and electric alternatives
Traditional internal combustion engine vehicles in this power range face declining demand in regions with strict emission norms, pushing manufacturers to innovate.
2021-2022
Increased demand in emerging markets
Growing infrastructure projects in Africa and Southeast Asia have boosted demand for medium-duty machinery and vehicles in this category.
2020-2022
Supply chain disruptions
Post-COVID supply chain challenges and semiconductor shortages have led to production delays, affecting trade volumes temporarily.
2021-2022
The European Union implemented stricter emission regulations for vehicles and machinery, requiring manufacturers to adapt products in this power range to meet Euro 6d standards.
January 2023
Increased production costs for exporters to the EU, potentially reducing trade volumes temporarily until compliance is achieved.
Phase 2 negotiations between the US and China included discussions on reducing tariffs for industrial machinery, potentially benefiting this category.
March 2023
If finalized, this could increase trade flows between the two largest economies, boosting overall market growth.
Countries like India and Vietnam are emerging as manufacturing hubs for medium-duty vehicles and machinery, supported by government incentives.
June 2022
This shift may redistribute global trade patterns, with increased exports from these regions in the near future.