Iran’s closure of the Strait of Hormuz has disrupted a key route for Japan’s used-vehicle exports, effectively cutting off shipments through the UAE hub.
According to a report by Nikkei Asia, the UAE serves as a major redistribution centre for second-hand vehicles headed to markets in the Middle East and Africa.
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Around 400 used-car dealers operate in the country, many based in Dubai Auto Zone, where companies can access tariff and corporate tax exemptions under certain conditions.
Used vehicles shipped from Japan and South Korea are commonly sent to the UAE before being re-exported to other destinations.
However, the closure of the Strait of Hormuz has left UAE ports unable to operate, interrupting the movement of vehicles through the trading hub.
If the disruption continues, it could affect the global used-car market.
Reduced supply across the Middle East and Africa may push vehicle prices higher.
In Japan, the impact could move in the opposite direction.
The country exported 1,708,604 used vehicles in 2025, a 9% increase compared with the previous year, according to the Japan Used Motor Vehicle Exporters Association cited in the report.
The UAE accounted for about 15% of those exports.
Japan’s used vehicles are largely sold through auctions, with roughly half of auctioned units destined for export markets.
With shipments to the UAE halted, inventories in Japan could rise, potentially lowering auction bidding prices.
Declining used-vehicle prices may also weaken trade-in values, which could affect demand for new vehicles domestically.
If overseas markets experience shortages of Japanese second-hand vehicles, low-cost Chinese electric vehicles may emerge as alternatives in parts of Africa.
More than ten vehicle carriers remain stranded in the Gulf following the closure of the Strait of Hormuz, with vessels linked to Japan believed to be among them.
