Ultra-luxury automakers including Rolls-Royce Motor Cars and Bentley are reporting weaker demand in the Middle East after U.S.-Israeli strikes on Iran and Iran's retaliatory strikes in the Gulf, threatening high-margin bespoke sales.
Rolls-Royce Motor Cars, owned by BMW, said it is "closely monitoring" the situation after unveiling its Arabesque model and opening a second Dubai showroom; many Gulf dealerships temporarily closed and some brands paused deliveries.
Chris Bull, director of F1rst Motors in Dubai, said business is down about 30% since reopening, though sales of cars priced above $1.4 million have stabilised and some buyers pay to fly vehicles out.
Bentley CEO Frank-Steffen Walliser had called the Middle East "the best market in the world," and Volkswagen Group CEO Oliver Blume said Middle East sales are "very high margin" and expects an impact.
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