By Hiroaki Otake and Taku Mukoyama / Yomiuri Shimbun Staff Writers
Major Japanese automakers are increasingly vigilant against the situation in the Middle East, as tensions flare up in the region.
Exports of Japanese cars to the Middle East hit a record high in 2025, as in recent years many automakers have positioned the region as a new growing market.
With Japan holding few production bases in the Middle East, if auto-carrying freighters remain unable to navigate the Strait of Hormuz, it could pose a huge blow to Japanese automakers.
A senior official of Mitsubishi Motors Corp. said he is closely monitoring the Middle East situation. "We have been discussing steps toward strengthening our presence in the Middle East, but we may need to review our strategy depending on future developments," he said. "It will be tricky if the situation persists like the Ukraine crisis."
In 2023, Mitsubishi Motors designated the Middle East and Africa as a market that is its "second pillar," after its mainstay Southeast Asian market. The automaker's cars are known for their durability in harsh environments, so the company anticipated that their products will be well-received in the desert-rich Middle East. In the fiscal year ending March 2025, around 30,000 vehicles were exported to the Middle East by Mitsubishi Motors -- up 9.3% from the previous year.
According to Finance Ministry trade statistics, Japan exported about 820,000 vehicles to the Middle East in 2025. The export value increased by 15.3% from the previous year at 2.45 trillion yen, which accounted for more than half of Japan's total exports to the region. Saudi Arabia ranked fifth in value among countries and regions to which Japan exported its vehicles, followed by the United Arab Emirates.
Car exports to the Middle East have grown significantly during the 2020s, attributed to increased appreciation for the driving performance of Japanese vehicles. In 2018, Saudi Arabia lifted its ban on driving for women, which is also believed to have served as a tailwind for Japanese automakers.
Exports to Africa may well be affected
Toyota Motor Corp., which has a high market share in the Middle East, exported 320,000 vehicles in 2025. Nissan Motor Co. saw its export grew by 24% to 77,784 units, buoyed by the popularity of its luxury sports utility vehicle Patrol. The automaker categorized the Middle East as a "major market" in May last year.
However, the uncertain outlook of the Middle East may hinder the momentum of Japanese automakers. "Many of the export routes to the Middle East go through the Strait of Hormuz," said Joji Izawa of the Japan External Trade Organization (JETRO). "If exports (to the Middle East) remain restricted, stocks may run out, potentially reducing the sales of finished vehicles."
The impact of the escalating conflict may extend to other regions, as the United Arab Emirates serves as a hub for exporting used cars to emerging markets such as African nations. "If companies choose alternative routes to detour the Strait of Hormuz, travel distances will increase, which will up shipping costs," said Ryutaro Tan, head of the president's office at major used car exporter Be Forward Co. "We would like to take flexible approaches, such as switching to other regions that have demand for our products."
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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March 05, 2026 05:39 ET (10:39 GMT)
Copyright (c) 2026 The Yomiuri Shimbun
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