The U.S.-Israeli war against Iran has caused a sharp decline in car sales across the Middle East in March, with Nissan and Stellantis seeing their sales fall to nearly half of pre-conflict levels, highlighting the growing pressure facing the automotive sector in the region.
Nissan confirmed that the issue is no longer limited to shipping and logistics disruptions, but is now directly tied to weaker demand across Gulf markets, especially given the company’s heavy reliance on models like the Patrol, one of the region’s most popular vehicles.
According to Guillaume Cartier, Nissan’s Chief Performance Officer, demand has dropped by between 40% and 60% depending on the market. He noted that the company is not struggling to supply vehicles, but that the real concern is how long the weak demand will continue.
Meanwhile, Stellantis, owner of Peugeot, Fiat, and Jeep, announced that its shipments to Gulf countries fell by more than 50% during the first quarter of the year, reaching only around 3,000 vehicles, despite the company posting annual global sales growth of around 12%.
Global automakers, from Toyota to Volkswagen, have also faced major logistical challenges due to the closure of the Strait of Hormuz, forcing some companies to reroute shipments through alternative ports such as Fujairah and Jeddah to maintain supply chains.
Despite these challenges, the Gulf remains one of Nissan’s most important markets, with around 1.3 million vehicles sold there annually. Nissan holds more than 10% market share in the region thanks to strong demand for its SUV lineup.
The slowdown has pushed Nissan to redirect some Gulf-destined models to other markets, including modifying certain Patrol components for the Armada sold in North America.
At the same time, Nissan unveiled its long-term strategy, which includes reducing its lineup by 20%, integrating artificial intelligence technologies into 90% of its future vehicles, and expanding exports of China-made EVs to new markets such as Latin America, Southeast Asia, and the Gulf.
The Japanese automaker aims to increase its total sales and exports from China to one million vehicles by 2030, up from 660,000 vehicles last year.
