The ongoing Middle East conflict, especially the disruption of the Strait of Hormuz, has sent ripples through the used car markets in the Middle East and Africa, reshaping supply chains, pricing trends and competitive landscapes for global traders.
As the core transit hub for used cars in the two regions, the UAE’s Jebel Ali Port has been disrupted, cutting off the main supply of Japanese and Korean used cars—which account for a large share of imports. Shipping routes detouring the Cape of Good Hope have increased costs by 200%-300% and extended delivery times by 10-14 days, leading to severe shortages and price surges of mainstream models like Toyota Prado.
For African markets, which rely heavily on UAE transshipment, the conflict has caused a sharp drop in Japanese used car supply. This gap has created a golden opportunity for Chinese used cars and new energy vehicles (NEVs), which enter the market through alternative routes like Oman’s Fujairah Port and Saudi Arabia’s Jeddah Port.
Consumer demand is also shifting: fuel-efficient hybrids and NEVs are gaining popularity amid rising oil prices, while large-displacement fuel-powered used cars have seen a sharp depreciation. Meanwhile, the conflict is accelerating market restructuring, with China’s cost-effective vehicles gaining more market share against the backdrop of disrupted traditional supply chains.
For foreign traders, adapting to diversified logistics routes and seizing the alternative demand for Chinese vehicles will be key to navigating the volatile market. The conflict brings challenges, but also unlocks new growth opportunities for compliant and flexible market players.
Junchi Hai Automobile International Trade Co., Ltd. (JCH Auto), formerly known as Dajianghang Automobile Sales Co., Ltd., was established in 2001 in Changsha, the capital of Hunan Province, China, with a registered capital of 10 million RMB.
