Gulf Cooperation Council: Auto Market Shifts as Japanese Brands Face Fierce Chinese Competition

An attack on Iran by the United States and Israel at the end of February 2026 has completely shifted the situation surrounding the GCC (Gulf Cooperation Council) countries. With Iran having launched attacks on GCC nations and blockaded the Strait of Hormuz, the automotive industry will no longer be able to deploy its traditional business models in the region moving forward. Although Japanese brands maintain around a 50% market share across these countries, exports from Japan to the GCC have become severely restricted, making a negative impact on business performance inevitable. Japanese brands, in particular, had already been losing market share to Chinese rivals in recent years, making a further decline in share a major emerging concern.