Middle East Conflict Impacts China's Car Exports, Affecting the European Market | Going Global · Automotive

WealthCoffee · 2026-03-04T08:34:04+00:00

The turmoil in the US-Israel-Iran situation is affecting the Middle Eastern market, and Chinese auto exports are being hindered. State-owned automakers' operations in Iran have stalled, and the trade transit hub is unsafe, leading to an overall impact on trade. Automakers are attempting to enter Iran through cooperation and transit trade, but the situation remains severe.

WealthCoffee

2026-03-04 08:34:04

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Caixin News Under the backdrop of the Israel-Iran conflict, the Middle East, a key market for China’s automobile exports, has also been affected.

An employee involved in import and export at a state-owned automaker told Caixin that the company’s business in Iran has come to a halt, and other markets have also been impacted. “Many Chinese car dealers conduct transshipment trade through Dubai, and from there, they go to other Middle Eastern markets or West Africa and North Africa. Now, this transshipment point is unsafe, and the overall situation is affected,” said another person engaged in auto foreign trade.

The situation in Iran has been unstable for a long time. Chinese automakers mainly approach the Iranian market through two channels: one is through cooperation with local companies for vehicle assembly, such as Chery, Changan, and Dongfeng, all emphasizing a light-asset model; the other is some automakers, dealers, and import-export companies entering through complete vehicle trade, mainly transshipping via the UAE (especially Dubai) to Iran.

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