Middle East Conflict Disrupts Japan's Automotive Industry

Kathmandu. The conflict that began in West Asia has impacted Japan's automotive industry within less than a month. Furthermore, disruptions in shipping have forced car factories operating in the region to shut down.

According to data from trade research firms, imports of petroleum products fell by approximately 30 percent in March. The reduced supply of naphtha, a crucial raw material for the chemical industry, has led to a decline in plastic component production. Additionally, there has been a sharp rise in the prices of butadiene and synthetic rubber, which are essential for tire manufacturing.

According to Tang Jin, a senior researcher and automotive industry expert at Mizuho Bank in Japan, the long-term tension in the Middle East has had a direct and profound impact on Japan's automotive industry.

The Middle East is a significant market for Japanese car manufacturers. However, shipping disruptions, delivery delays, and order cancellations have affected production plans. This has forced some companies to reduce or halt production for Middle Eastern customers.

According to Japanese media, Toyota plans to reduce production for the Middle East by 24,000 units in April. Nissan has indicated that the production cuts implemented in March will continue into April. Mazda has confirmed that it will halt production for Middle East exports until May, while Subaru has stated that exports have already stopped due to shipping disruptions through the Strait of Hormuz.

Although there were expectations of a two-week ceasefire between Iran and the US and safe shipping through the Strait of Hormuz, industry experts have stated that the recent situation remains uncertain and they are waiting to observe its impact.