The impact on the Japanese automotive industry continues to expand as the Middle East conflict persists.

Since the outbreak of the Middle East conflict over a month ago, the impact on the Japanese automotive industry has continued to expand. Not only has the import of raw materials such as naphtha been impeded, leading to pressure on and price hikes for automotive components, but entire vehicle production has also been forced to decrease or stop. According to market research firm Kepler, in March, Japan's imports of petroleum products such as naphtha decreased by about 30% compared to the previous month. As an important chemical raw material, the tight supply of naphtha has directly caused a shortage of raw materials for the manufacturing of ethylene and other plastic components, while the basic raw materials for tire production, such as butadiene and synthetic rubber, have also significantly increased in price. Tsuyoshi Tamaki, Director of the Business Solutions Department at Mizuho Bank and an automotive expert, believes that the ongoing tension in the Middle East has had a direct and profound impact on the Japanese automotive industry. The tight supply of naphtha has led to price hikes for a large number of automotive components and tires, which will increase the cost of Japanese automobiles, squeeze profits for car companies, and weaken Japan's competitiveness in the automotive industry. The Middle East is an important market for Japanese automotive companies. Due to disruptions in car transportation, vehicles destined for the Middle East market are unable to be delivered, putting pressure on Japanese car manufacturers' production plans. Due to delivery delays and cancellations, many car companies have been forced to reduce or halt production of models intended for export to the Middle East market. According to reports from Japan, Toyota plans to cut production for export to the Middle East by 24,000 vehicles in April. Nissan will continue the production cuts they started in March in April. Mazda has confirmed that they will stop production of vehicles for export to the Middle East by the end of May. Subaru has confirmed that due to disruptions in shipping through the Strait of Hormuz, they have ceased exports to the Middle East.