Japan Automakers Fear Middle East Conflict May Deal Major Blow to Exports

By Hiroaki Otake and Taku Mukoyama / Yomiuri Shimbun Staff Writers

10:49 JST, March 8, 2026

Major Japanese automobile manufacturers are concerned about the situation in the Middle East as it could deal a major blow to auto exports.

Japanese automakers view the Middle East as a growing market, with exports to the region reaching a record high in 2025. However, the prolonged closure of the Strait of Hormuz could disrupt this due to a lack of production bases in the area.

“We have been discussing the expansion [of our presence] in the Middle East, but the development of the situation may force us to revise the strategy,” said an executive of Mitsubishi Motors Corp. “If the situation drags on like the one in Ukraine, it will become serious.”

In 2023, the company positioned the Middle East and Africa as a “second pillar” after its core market in Southeast Asia. This decision was based on the expectation that its cars, which boast high durability even in harsh environments such as deserts, would be well-received in the Middle East.

In fiscal 2024, auto exports to the region reached about 30,000 vehicles, a 9.3% increase from the previous year.

According to the Finance Ministry’s trade statistics, Japan’s auto exports to the Middle East in 2025 reached ¥2.45 trillion, approximately 820,000 units, and a 15.3% increase from the previous year. Automobiles accounted for half of Japan’s total exports to the region.

By country or region for auto exports, Saudi Arabia ranked fifth and the United Arab Emirates ranked sixth.

Japan’s auto exports to the Middle East significantly increased after 2020. Growing appreciation of the performance of Japanese cars and Saudi Arabia’s 2018 lift of the ban on women driving apparently spurred the expansion.

Exports to Africa also at risk

Toyota Motor Corp., which has a high market share in the Middle East, exported 320,000 units to the region in 2025.

Nissan Motor Co. positioned the region as a key market last May. The company exported 77,784 units to the region in 2025, up 24% from the previous year. Its luxury sports utility vehicle Patrol is particularly popular.

However, the unpredictable situation in the Middle East casts a shadow over Japan’s booming auto exports.

“Exports to the Middle East often rely on a route that passes through the Strait of Hormuz,” said Joji Izawa of the Japan External Trade Organization. “If this restriction drags on, companies’ inventories in the region may run out, potentially leading to a decrease in car sales.”

The impact could extend to exports other than those destined for the Middle East. The UAE is used as a base for exporting used vehicles to developing countries such as African nations.

“Using routes other than the Strait of Hormuz would lengthen the journey, increasing transportation costs,” said Ryutaro Tan, head of the president’s office at major used car exporter Be Forward Co. “We would like to respond flexibly, such as by shifting to other regions where demand exists.”