Chinese automakers are encountering significant export disruptions as conflicts in the Middle East escalate, impacting both direct sales to Iran and vital transshipment routes through Dubai. These routes serve markets across the Middle East, West Africa and North Africa, and recent security concerns have prompted shippers to suspend services at key ports.
Exports to Iran have effectively ground to a halt, according to industry insiders, while the suspension of shipments through Dubai’s Jebel Ali port is disrupting forward-warehouse operations that many companies rely on. In 2025, the United Arab Emirates ranked as China’s third-largest export destination for passenger cars, trailing only Mexico and Russia. Data from the China Passenger Car Association indicates that 567,000 vehicles were shipped to the UAE last year—a year-on-year increase of more than 70 percent—and well above the country’s own annual sales of under 400,000 units.
Shanghai-based manufacturers and state-owned firms typically preposition vehicles in Dubai before redistributing them throughout the region, taking advantage of the port’s roll-on/roll-off capabilities, tax advantages and financial infrastructure. An early-March attack on Jebel Ali forced port operator DP World to halt operations temporarily. Although four berths resumed activity later that day, most shipping lines have kept vessels away, effectively idling the facility.
The fallout is extending to European markets as well. The European Union, which received more than 1.3 million Chinese-built vehicles in 2025—including the bulk of new energy vehicle exports—now faces longer transit times. With the Red Sea and Suez Canal routes deemed high risk, carriers are considering rerouting around the Cape of Good Hope, adding an estimated 10 to 15 days to delivery schedules.
Despite a record 7.09 million vehicle exports in 2025—a roughly 20 percent increase over the previous year—forecasts for 2026 may require revision. The China Association of Automobile Manufacturers had projected modest growth to 7.4 million units, but ongoing regional instability could reshape the outlook.
Investments in local logistics infrastructure illustrate the stakes. Just weeks before the recent attack, a shipment of automotive parts was transferred into a 19,000-square-meter warehouse in Dubai’s Jebel Ali Free Zone, jointly developed by COSCO Shipping and Chery, to shorten response times for Middle Eastern customers from weeks to days.
Source: CarNewsChina
