Amid tensions in the Middle East, India-China auto sector faces a crisis, potentially losing billions of dollars.

News Topical, Digital Desk : The conflict between the US and Israel and Iran has been going on for eight days. But amid rising tensions in the Middle East, the auto markets in Asian countries have become difficult. The Middle East is a major export market for Asian automakers, but the tensions have disrupted vehicle shipments from Asia to the Middle East.

India-China auto exports under threat

Automakers from China, India, South Korea and Japan export billions of dollars worth of cars to the Middle East through the Strait of Hormuz, and fears of Iranian attacks have halted shipping along the route.

Both India and China export billions of dollars worth of cars to Middle Eastern countries each year, but shipping to the Gulf countries has come to a halt amid the tensions.

How much auto export did India do in 2025?

According to commercially available customs data, India exported cars worth $8.8 billion in 2025, of which 25 per cent were exported to the Middle East, especially Saudi Arabia.

Hyundai Motor is India's largest exporter of cars. Hyundai projects global shipments from India to the Gulf region in 2025 worth $1.8 billion.

According to the data, Toyota also has significant exposure. Toyota exported $470 million in 2025, accounting for nearly two-thirds of India's total exports. Of this, more than $300 million was exported to the Middle East.

According to the data, Maruti Suzuki sends less than 15% of its exports by value to the Gulf region. Of its total exports of $3.2 billion in 2025, cars worth $457 million were shipped to the Middle East.

China also suffered heavy losses

The Middle East is the second-largest overseas market for Chinese-made vehicles. Of the 8.32 million cars shipped overseas by Chinese automakers in 2025, 1.39 million went to Gulf countries like Saudi Arabia and the United Arab Emirates, according to the China Passenger Car Association.

Kia, Hyundai Motor and Toyota Motor's Chinese joint venture are also among the top 10 car exporters to the Middle East, according to data from the Gasgu Automotive Research Institute.

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