The rerouting of commercial shipping routes and rising transportation costs have slowed the automotive market in the Kurdistan Region, pushing car prices up by $1,000 to $2,000 per vehicle.

Sharp Increase in Shipping Costs

Following the shift of import routes from the Strait of Hormuz to a transit route via Dubai and Turkey, transportation costs for vehicles have risen significantly.

Shipping fees for Chinese cars have increased from $500 to nearly $2,000, while the cost of importing used American cars has climbed from $2,500 to $4,000.

Impact on Market Prices and Sales Activity

The rise in transport expenses has directly affected final car prices in Kurdistan’s markets. Car dealer Mohammad Ahmad said this has increased prices by $1,000 to $2,000 per vehicle, resulting in a near-complete slowdown in buying and selling activity.

Shifts in Buyer Behavior

Dealers such as Miran Mohammad and buyer Yasin Salih note that rising prices have changed consumer priorities, with buyers now focusing more on price than on quality or features.

As a result, customers are increasingly seeking the cheapest available option rather than the most suitable one.

Outlook for the Automotive Market

The current situation in the automotive sector is described as a “silent crisis.” Rising freight costs and market stagnation are expected to continue until conditions in the Strait of Hormuz stabilize and shipping routes return to normal.