The impact of the war involving Iran is beginning to reach far beyond politics and energy markets. Now, the global automotive industry is starting to feel the pressure.
As tensions escalate in the region, shipments of vehicles from Asia to the Middle East are facing growing uncertainty. At the heart of the concern lies the Strait of Hormuz, one of the most vital shipping routes in global trade. With security fears rising around this narrow passage, the steady flow of cars heading to Middle Eastern markets could soon face disruption.
With the conflict entering its seventh day on Friday, industry observers are increasingly worried that instability in the strait could interfere with vehicle exports from Asia to the region — one of the most important markets for Asian automakers. If shipping disruptions continue, billions of dollars’ worth of vehicles could be caught in new supply-chain bottlenecks.
Manufacturers from China, India, South Korea, and Japan rely heavily on this maritime corridor to deliver vehicles to the Middle East. But fears of potential attacks on vessels in the area have already pushed some shipping companies to delay or suspend trips along the route, adding fresh pressure to an already complex global supply network.
The Middle East Is a Key Market for Chinese Automakers
For China’s automotive industry, the Middle East has become increasingly important. In fact, it now stands as the second-largest overseas destination for Chinese-built vehicles — a crucial outlet as domestic demand at home slows.
In 2025, Chinese automakers exported 8.32 million vehicles worldwide. Out of that total, around 1.39 million cars — roughly one out of every six exported — were shipped to Gulf markets such as Saudi Arabia and the United Arab Emirates.
Leading exporters to the region include major Chinese brands like Chery, BYD, SAIC Motor, Changan, and Geely. In addition, Chinese joint ventures with Kia, Hyundai, and Toyota also rank among the top vehicle exporters to the Middle East, according to data from the Gasgoo Automotive Research Institute.
India’s Growing Reliance on Gulf Markets
India also counts the Middle East among its most important export destinations.
In 2025, the country shipped $8.8 billion worth of vehicles overseas, with about a quarter of those exports heading to Middle Eastern markets, particularly Saudi Arabia.
Among manufacturers operating in India, Hyundai Motor has the greatest exposure to the region. Nearly half of its global shipments from India, valued at $1.8 billion, were sent to Gulf countries.
Toyota also maintains a strong presence. Roughly two-thirds of its vehicle exports from India — more than $300 million out of a total of $470 million — went to Middle Eastern markets.
Meanwhile, Maruti Suzuki sends a smaller share of its exports to the region, with less than 15% of its overseas shipments heading to the Gulf. In 2025, that translated to $457 million worth of vehicles out of $3.2 billion in total exports.
For Nissan, exports from India to the Middle East reached around $318 million, accounting for 38% of its total exports from the country.
South Korea Posts Strong Export Numbers
South Korea also recorded a strong year in the global automotive market. In 2025, the country’s car exports reached a record $72 billion.
Out of that figure, $5.3 billion worth of vehicles were shipped to the Middle East, representing a 2.8% increase compared with 2024, according to the Korea International Trade Association.
For Hyundai Motor, shipments to the Middle East and Africa represented about 8% of its total wholesale sales, which reached 4.14 million vehicles globally. That equates to roughly 317,000 vehicles delivered to the two regions.
Similarly, Kia sent around 8% of its global wholesale sales — totaling 3.1 million vehicles — to markets across the Middle East and Africa.
Toyota May Cut Production for Middle Eastern Markets
Japan’s largest automaker, Toyota, exported 320,699 vehicles to the Middle East in 2025, marking a 5.4% increase from the previous year.
Those shipments accounted for just over 15% of Toyota’s total global exports, which exceeded two million vehicles during the year.
However, the growing geopolitical tension is already beginning to influence production plans. According to Japan’s Nikkei newspaper, Toyota may produce around 40,000 fewer vehicles intended for Middle Eastern markets, citing logistical risks tied to the ongoing conflict.
