Chinese and Indian automakers lead vehicle shipments worth billions to the Middle East, a vital market now threatened by the U.S.-Israel war against Iran entering its seventh day. Shipping through the Strait of Hormuz has nearly halted due to fears of Iranian attacks, snarling routes for Asian exporters reliant on the Gulf for growth.
Key Export Figures and Players In 2025, China exported 8.32 million vehicles globally, with 1.39 million (about one-sixth) heading to Gulf nations like Saudi Arabia and the UAE.
Major players include Chery, BYD, SAIC Motor, Changan, and Geely, plus joint ventures from Kia, Hyundai, and Toyota. India shipped $8.8 billion in cars last year, with 25% ($2.2 billion) to the Middle East, mainly Saudi Arabia.
Hyundai’s India operations sent half its $1.8 billion global exports to the Gulf, while Toyota routed over $300 million (two-thirds of its India exports) there.
Conflict’s Immediate Toll The Strait closure risks billions in trade as vessels idle or reroute. Toyota plans to cut production by nearly 40,000 vehicles for Middle East markets due to logistics issues.
South Korea exported $5.3 billion to the region (from $72 billion total), and Japan’s Toyota sent over 320,000 units (15%+ of its exports). The Middle East offsets weak domestic demand in China and provides high-margin opportunities. Disruptions could force delays, higher costs, and lost sales, pressuring automakers already facing global slowdowns in 2026 projections.