Strait of Hormuz Disruption Deals Short-Term Blow to China's Auto Exports to Middle East

Recently, shipping disruptions in the Strait of Hormuz have impacted key Middle Eastern ports such as Jebel Ali, leaving 1,200 Chinese new-energy vehicles (NEVs) belonging to Bobilu Automotive stranded in the Gulf of Oman. These vehicles, originally intended for re-export to Iran and Iraq, cannot be delivered due to U.S.-Israeli military actions against Iran and the disruption of payment channels. In 2025, China’s exports of complete vehicles to the Middle East reached 1.39 million units, a year-on-year increase of approximately 40%. Most Chinese automakers have adopted deep collaboration models with local dealerships, offering a certain degree of resilience against risks. However, this supply chain disruption has placed significant pressure on some dealers, who now face halted cash flows, rising costs, and critically low inventory levels. Automakers have responded by rerouting shipments through alternative ports and utilizing land transport. Although these measures have temporarily increased freight and insurance costs—squeezing profit margins—the high-value NEV segment has demonstrated notable resilience. Industry insiders believe this crisis could accelerate the divergence of Chinese automakers’ overseas strategies and drive industrial upgrading.