The Iran conflict isn’t just disrupting oil shipments. Japan’s automakers have been forced to cut production of vehicles bound for lucrative Middle East markets. The companies are developing strategies to adapt.
Toyota and Nissan cut production this month. Honda may also reduce exports to the region from plants in Japan, the US and Thailand. Instead it is raising output for those local markets.
Toyota Motor President Sato Koji commented on the challenges on March 19 as chairman of the Japan Automobile Manufacturers Association.
He says using a route around Africa’s Cape of Good Hope is another way of reaching Middle East markets. This avoids the Strait of Hormuz near Iran.
The association says the Middle East has become one of Japan’s important global markets.
It says about 800,000 vehicles were shipped from Japan to the Middle East in 2025. That’s an export value of about 2.4 trillion yen, or nearly 15 billion dollars.
