Premium automakers including Ferrari are resorting to air freight to deliver ultra-exclusive vehicles to wealthy Middle Eastern clients, as escalating tensions involving Iran disrupt traditional shipping routes and threaten demand in one of the industry’s most profitable regions. The move follows restrictions on maritime traffic through the Strait of Hormuz, a critical artery for global trade, which have left car carriers unable to access Gulf markets.
Ferrari confirmed it had halted most vehicle deliveries to the region due to the disruption but is continuing a limited number of shipments by air. The Italian marque has also offered clients the option to reroute deliveries to locations outside the Middle East if necessary. Even before the conflict intensified following military actions by the United States and Israel, some high-net-worth buyers were already opting for air freight to accelerate delivery of bespoke, limited-edition models.
Industry executives say the cost of flying luxury vehicles has surged dramatically, now reaching four to five times the cost of sea transport due to rising logistics prices. Data from Freightos indicates that air cargo rates from Europe to the Middle East have jumped by roughly two-thirds since the conflict began. Despite the steep premium, affluent customers appear willing to absorb the additional expense to secure their highly personalised vehicles.
Other luxury manufacturers are taking varied approaches. Bentley said it is relying on existing regional inventory to fulfil pre-conflict orders and is not currently using air transport. Meanwhile, Rolls-Royce Motor Cars, owned by BMW, stated it is doing everything possible to meet client demand, with its leadership maintaining close communication with customers across the region.
The Middle East remains a crucial market for luxury automakers despite its smaller overall vehicle volumes compared with larger economies. Wealthy buyers in the region are known for commissioning highly customised vehicles, with personalisation accounting for a significant share of revenues for brands like Ferrari. This makes the region disproportionately important for profitability.
However, the ongoing conflict is beginning to dampen business sentiment. While most existing orders have not been cancelled, industry insiders report a slowdown in new purchases. Some manufacturers have paused expansion plans, including dealership openings in key markets such as Saudi Arabia, while showroom traffic in cities like Abu Dhabi has declined noticeably.
The broader industry is also under pressure. Volkswagen has warned that instability in the Middle East could hurt sales across its premium portfolio, which includes brands such as Porsche, Lamborghini, and Audi. At the same time, automakers are grappling with higher tariffs in the US and weakening demand in China, leaving few alternative growth markets.
Executives warn that if the conflict persists, companies may be forced to redirect vehicles originally intended for Middle Eastern buyers to other regions such as Japan — though often at lower margins. The situation underscores the fragility of the global luxury car market, where geopolitical shocks can quickly disrupt supply chains and erode demand.
As one industry veteran noted, the convergence of challenges across major markets leaves little room for recovery. With geopolitical tensions rising and economic uncertainty spreading, luxury carmakers face a period of mounting pressure in even their most lucrative segments.
