Friday, March 27, 2026
29.1 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

‘Want to go in peace’: Spanish gang-rape survivor dies by euthanasia after 18-month legal battle

A 25-year-old Spanish woman, Noelia Castillo, died by euthanasia on Thursday in Barcelona after a prolonged legal fight, including against her own father, for the right to end her life. Read More

Saudi Arabia Pivots To Ukraine For Defence As Pakistan Fails To Deliver On Security Pledges | Exclusive Details

News18 has learnt that Riyadh is increasingly disillusioned with Islamabad’s ‘diplomatic-only’ approach following Iranian ballistic missile and drone strikes on Gulf targets Go to Source Read More

Only One-Third Of Iran’s Missile Arsenal Destroyed By US So Far: Report

US intel contradicts Donald Trump, saying Iran retains significant missile and drone firepower despite Operation Epic Fury, strikes on Diego Garcia and attacks on UAE. Read More

International Whiskey Day: Save These 2 Whiskey Cocktail Recipes For Your Next Party

Shake things up this International Whiskey Day with these 2 enticing cocktail recipes that can be made with a well-stocked bar. Read More

Panjab University Vice Chancellor gets 4 month extension a day before tenure to end

. CHANDIGARH: Panjab University Vice-Chancellor Prof Renu Cheema Vig has been granted a four-month extension, with the Centre issuing a formal notification on March 27, just a day before her tenure was set to end. Read More

Topics

‘Want to go in peace’: Spanish gang-rape survivor dies by euthanasia after 18-month legal battle

A 25-year-old Spanish woman, Noelia Castillo, died by euthanasia on Thursday in Barcelona after a prolonged legal fight, including against her own father, for the right to end her life. Read More

Saudi Arabia Pivots To Ukraine For Defence As Pakistan Fails To Deliver On Security Pledges | Exclusive Details

News18 has learnt that Riyadh is increasingly disillusioned with Islamabad’s ‘diplomatic-only’ approach following Iranian ballistic missile and drone strikes on Gulf targets Go to Source Read More

Only One-Third Of Iran’s Missile Arsenal Destroyed By US So Far: Report

US intel contradicts Donald Trump, saying Iran retains significant missile and drone firepower despite Operation Epic Fury, strikes on Diego Garcia and attacks on UAE. Read More

International Whiskey Day: Save These 2 Whiskey Cocktail Recipes For Your Next Party

Shake things up this International Whiskey Day with these 2 enticing cocktail recipes that can be made with a well-stocked bar. Read More

Panjab University Vice Chancellor gets 4 month extension a day before tenure to end

. CHANDIGARH: Panjab University Vice-Chancellor Prof Renu Cheema Vig has been granted a four-month extension, with the Centre issuing a formal notification on March 27, just a day before her tenure was set to end. Read More

Pisces Horoscope Tomorrow, March 28, 2026: Career Progress And Domestic Joy

Pisces Horoscope:Pisces is symbolised by the fish, representing duality, fluidity, and deep emotional currents. Read More

Iran’s New Supreme Leader In ‘Full Health’, Absence Linked To Security Concerns

Ali Bahraini says Supreme leader Mojtaba Khamenei is in full health and leading Iran, despite public absence after Ali Khamenei killing and injuries in US Israel strikes. Read More

No retakes, no filters: Why our souls crave theatre’s raw power

Photo credit: Instagram/@nsd_official_ On any given evening, the pavements around Delhi’s cultural hub begin to fill up long before the curtains rise. Read More

Related Articles