Mazda halts production of Middle East-bound cars until May

Mazda has confirmed it will suspend production of vehicles bound for the Middle East until at least May, redirecting its production capacity towards vehicles bound instead for European and US markets to maintain overall output. Exports to the region had already been halted in March following the effective closure of the Strait of Hormuz; the production suspension formalises an adjustment that was already under way.

As it stands, Mazda’s Japanese plants produce roughly 30,000 vehicles every year for Middle Eastern markets, with the CX-5 SUV among the primary models affected. During the affecting period, the automaker will adapt its production towards models and variants preferred by Western consumers. For June and beyond, the company said it would make flexible decisions based on how conditions develop—essentially a concession that the situation in the Gulf remains highly volatile. 

Mazda is not alone in adjusting to the closure, either among its Japanese cohorts or overseas. Subaru, for example, halted exports bound for the Middle East on 1 April. Toyota, whose Middle East volume dwarfs that of its domestic peers—approximately 520,000 vehicles sold across the region in 2025—began cutting production of Land Cruisers and other regional models in March, with a further reduction planned for April. Combined, the Japanese industry exported more than 870,000 vehicles to Middle Eastern markets in 2025; a sustained closure removes a significant and well-established demand base from near-term production planning.

The shipping disruption is the immediate cause, but the underlying economics have significantly compounded the problem. Maritime insurers have sharply increased war-risk premiums for vessels transiting the Strait, and several major carriers including Hapag-Lloyd, Maersk, and MSC have suspended transits regardless of official diplomatic positioning.

The indirect consequences extend further than the export routes themselves. Japan imports roughly 90% of its crude oil, much of it from Gulf producers whose export infrastructure is heavily dependent on access to the Strait. Rising energy input costs affect virtually every stage of vehicle manufacturing: steel and aluminium production, paint shops, powertrain machining—adding pressure to unit economics across the industry, not only for automakers with direct Middle East export exposure. 

Whether Mazda resumes Middle East-bound production in June will ultimately depend on whether shipping conditions stabilise. A ceasefire framework involving a temporary reopening of the Strait has been discussed but no agreement reached. Meanwhile, US President Donald Trump appears to be doing everything in his power to prolong and deepen the instability: a social media post by the president on 7 April promised, in reference to Iran, that “a whole civilization will die tonight”.