Wednesday, July 1, 2026
39.4 C
New Delhi

West Asia crisis: Strait of Hormuz disruption pushes luxury carmakers to airlift deliveries



<p>According to the report, if disruptions continue, some vehicles intended for West Asian customers may be redirected to other markets such as Japan.</p>
<p>“/><figcaption class= According to the report, if disruptions continue, some vehicles intended for West Asian customers may be redirected to other markets such as Japan.

Luxury carmakers are adopting alternative delivery methods for high-end vehicles in West Asia as disruptions in the Strait of Hormuz affect shipping routes, according to a report by the Financial Times.

Italian carmaker Ferrari said it has paused most vehicle deliveries to Gulf countries after car carriers were unable to enter the region due to restrictions around the Strait of Hormuz. However, the company said a limited number of personalised vehicles are still being delivered by air.

Ferrari has also informed investors that some vehicles could be shipped to customers outside the region if buyers request alternative arrangements, the report said.

Air freight was already used in some cases before the conflict, particularly for limited-edition or bespoke models, with customers opting for faster delivery despite higher costs.

Air freight costs rise amid conflict

Industry executives said that the cost gap between air and sea transport has widened since the disruption began. Data from Freightos, cited in the report, showed that the average cost of flying cargo from Europe to West Asia has risen to about $2.96 per kilogram, roughly two-thirds higher than earlier levels. Transporting vehicles by air remains significantly more expensive due to size and handling requirements.

Other manufacturers are also modifying their delivery plans. Bentley Motors said it is fulfilling orders using vehicles already available in the region rather than shipping new units by air.

Rolls-Royce Motor Cars said it is working with logistics partners to maintain deliveries but did not specify transport methods.

Chris Brownridge, chief executive of Rolls-Royce Motor Cars, said that West Asia remains a key market and that the company is in regular contact with customers to ensure deliveries continue.

West Asia remains a key market

Although markets such as the United States and China generate higher volumes, West Asia remains important for luxury carmakers due to demand for customised vehicles. At Ferrari, personalised options account for around one-fifth of automotive revenue.

Volkswagen Group has also warned that tensions in the region could affect sales of its premium brands, including Porsche, Lamborghini and Audi.

While most existing orders have not been cancelled, some companies have reported a slowdown in new bookings. One European luxury carmaker has paused plans to expand its dealership network in Saudi Arabia and reported reduced showroom activity in Abu Dhabi.

According to the report, if disruptions continue, some vehicles intended for West Asian customers may be redirected to other markets such as Japan.

Wider pressure on luxury carmakers

The disruption comes as the global luxury car market faces challenges, including higher tariffs in the United States and slower demand in China. Many manufacturers had expected demand in West Asia to offset weaker performance in these regions.

Senior Automotive Executive, Andy Palmer said the industry is facing a difficult environment, with demand weakening across multiple markets at the same time, the report added.

  • Published On Mar 27, 2026 at 05:02 PM IST

Join the community of 2M+ industry professionals.

Subscribe to Newsletter to get latest insights & analysis in your inbox.

All about ETAuto industry right on your smartphone!

Go to Source

Hot this week

Three die of suffocation during Mexico World Cup celebrations

In a subsequent update, the secretariat said a third victim, a 48-year-old woman, suffered asphyxiation on a nearby street. Read More

China to open the world’s first robot-run hotel in 2027: No receptionists, no housekeepers, no staff

Image: AI Generated Checking into a hotel has traditionally meant being greeted by reception staff, assisted with luggage and served by teams working behind the scenes. Read More

Mahua Moitra alleges eggs thrown by ‘BJP goons’ outside her office, shares video

Mahua Moitra alleged that BJP workers threw eggs and vegetables at her office. Read More

Queen 2: Subodh Bhave to star opposite Kangana Ranaut – EXCLUSIVE

Subodh Bhave in queen 2 One of Marathi cinema’s most accomplished actors, Subodh Bhave has built an illustrious career by portraying some of the most iconic personalities on screen while effortlessly balancing commercial enter Read More

Netizens wonder how did Anushka’s dress get longer in PIC by Shikhar’s wife

Actor Anushka Sharma and cricketer Virat Kohli have once again become the subject of online discussion following their appearance at Lord’s Cricket Ground. Read More

Topics

Three die of suffocation during Mexico World Cup celebrations

In a subsequent update, the secretariat said a third victim, a 48-year-old woman, suffered asphyxiation on a nearby street. Read More

China to open the world’s first robot-run hotel in 2027: No receptionists, no housekeepers, no staff

Image: AI Generated Checking into a hotel has traditionally meant being greeted by reception staff, assisted with luggage and served by teams working behind the scenes. Read More

Mahua Moitra alleges eggs thrown by ‘BJP goons’ outside her office, shares video

Mahua Moitra alleged that BJP workers threw eggs and vegetables at her office. Read More

Queen 2: Subodh Bhave to star opposite Kangana Ranaut – EXCLUSIVE

Subodh Bhave in queen 2 One of Marathi cinema’s most accomplished actors, Subodh Bhave has built an illustrious career by portraying some of the most iconic personalities on screen while effortlessly balancing commercial enter Read More

Netizens wonder how did Anushka’s dress get longer in PIC by Shikhar’s wife

Actor Anushka Sharma and cricketer Virat Kohli have once again become the subject of online discussion following their appearance at Lord’s Cricket Ground. Read More

Bobby Deol reunites with Prakash Jha for ‘Ek Badnaam… Aashram’ S4

Bobby Deol reunites with Prakash Jha for ‘Ek Badnaam… Aashram’ Season 4, gears up for August shoot – Reports The world of Baba Nirala is all set to expand once again. Read More

Hardik Pandya To CSK Move Gains Pace As 7 Teams Want MI Captain For IPL 2027

Show Quick Read Key points generated by AI, verified by newsroom Hardik Pandya reportedly leaving Mumbai; seven franchises show interest. Chennai Super Kings leads race, but captaincy not guaranteed. Read More

ENG vs IND: Abhishek Sharma Eyes Historic Sixes Record In 1st T20

Show Quick Read Key points generated by AI, verified by newsroom Abhishek Sharma eyes T20I sixes record against England. He has scored 288 runs, hit 22 sixes previously. Recent 19-ball fifty highlights his current explosive form. Read More

Related Articles