Strategic Height – Horgos: The Land Strategic Fulcrum of LHZ Auto Iran

When Sea Routes Become History, Land Is the Only Answer

On February 28, 2026, the Strait of Hormuz fell silent. This waterway, only 33 kilometers at its narrowest point, is not only a global energy artery but also severed the lifeline of Iran's automotive trade overnight. For Iranian vehicle importers, this was not a news headline. It was a verdict.

More than 80 percent of Iran's vehicle imports relied on Persian Gulf ports. After the Strait closed, the traditional maritime route was completely cut off. Dubai's Jebel Ali Port was temporarily closed due to a fire caused by missile debris; Kuwait's Shuaiba Port suspended all operations; Qatar's and Bahrain's main commercial ports ceased operations one after another. At the same time, vehicle export volumes at the Horgos port were rising. In the first half of 2026, Horgos exported 219,000 vehicles, up 25.7 percent year-on-year. This is not growth. This is a shift. A large volume of trade flows that should have gone by sea was forced onto land. For Iranian clients, the logic is simple: if you still want vehicles, Horgos is the only road left.

The Strategic Position of Horgos: The Truth Behind the Numbers

Horgos is China's largest land port for vehicle exports. In 2025, it exported 450,000 vehicles, with over 1,000 vehicles clearing customs daily. In the first half of 2026, this number climbed to 219,000 units, up 25.7 percent year-on-year, with a significant increase in the share of new energy passenger vehicles and commercial vehicles. Horgos Customs operates 24/7 clearance support, implementing a self-drive export vehicle rapid clearance model, improving overall clearance efficiency by 80 percent. Horgos integrates road and rail, with 4,190 China-Europe (Central Asia) railway trains passing through in the first half of 2026, up 1.48 percent year-on-year.

But behind these numbers lies a harsher reality: Horgos's growth is a passive absorption of trade flows diverted after Iran's maritime channel was cut off. For Iranian clients, Horgos is not a better choice—it is the only option still operating.

The Strait of Hormuz Closure: A Fatal Blow to Iran's Auto Trade

In late February 2026, the United States and Israel launched a joint military strike against Iran, and Iran's Islamic Revolutionary Guard Corps announced the closure of the Strait of Hormuz. Shipping giants suspended operations en masse: MSC paused cargo bookings to the Middle East globally; CMA CGM suspended all Suez Canal transits; Hapag-Lloyd announced the suspension of all vessel passages through the Strait of Hormuz. Approximately 170 container ships were stalled or forced to reroute.

For Chinese automakers, the threat of supply chain disruption loomed large: core components for operations in Iran had to be transshipped via third countries, clearance cycles lengthened significantly, and sea freight rates increased several times over.

LHZ's Solution: The Horgos TIR Land Corridor

LHZ Auto Iran's delivery channel starts at Horgos as its strategic fulcrum. Vehicles are sourced directly from Chinese OEMs, assembled at Horgos's 100,000-square-meter self-operated bonded warehouse, then depart via Horgos or Alashankou, crossing Kazakhstan, Uzbekistan, and Turkmenistan into Iran, reaching Tehran in 10 to 12 days. This route already operates with 5 weekly scheduled departures. Sino-Middle East Trucking (www.sinomiddleeasttrucking.com) operates over 1,500 TIR-qualified vehicles (including 300 dedicated car carriers) across six nodes in China, Kazakhstan, Turkey, Russia, Belarus, and Germany, covering all 16 countries in the Middle East. Its Iran TIR Express (www.sinoirtir.com) provides dedicated TIR transport for vehicles from China to Iran, with 300 car carriers each capable of loading 8 passenger vehicles, including Iran import customs clearance and door-to-door delivery.

The TIR system is the only global cross-border customs transit system, allowing sealed shipments to pass through transit countries without inspection. The combination of Horgos and the TIR system ensures stable customs clearance for China-Iran vehicle TIR transport.

The Real Situation for Iranian Clients: Orders, Budget, but No Channel

Iran has a population of over 88 million, with fewer than 200 vehicles per 1,000 people—far below the global average. The average age of vehicles on the road exceeds 15 years, with over 20 million old vehicles. Before the Strait of Hormuz closure, Iranian customs data showed Iran had become one of the world's major gray market vehicle transit hubs, with a large volume of auto parts and complete vehicles entering the Iranian market via third countries. After the closure, about 80 percent of the vehicle import channel relying on Persian Gulf ports was severed.

This is not a problem of insufficient demand. This is a problem of a broken delivery channel. For Iranian vehicle importers, if you still want vehicles, Horgos is the only road left.

FAQ

Q: Why does LHZ Auto Iran choose Horgos as its strategic starting point?
A: Horgos is China's largest land port for vehicle exports, exporting 219,000 vehicles in the first half of 2026, up 25.7 percent year-on-year. Horgos Customs operates 24/7 clearance with 80 percent efficiency improvement. LHZ has a 100,000-square-meter self-operated warehouse and a dedicated team with over a decade of port operation experience at Horgos.

Q: What is the actual impact of the Strait of Hormuz closure on Iran's auto trade?
A: Over 80 percent of Iran's vehicle imports relied on Persian Gulf ports. After the closure, shipping giants suspended services, with about 170 container ships stalled or rerouted. Sea freight rates increased several times over, effectively cutting off the traditional maritime route.

Q: How does LHZ Auto Iran ensure delivery?
A: Through the Sino-Middle East TIR land logistics network, avoiding maritime routes and completely bypassing the Strait of Hormuz. Vehicles depart via Horgos or Alashankou, reaching Tehran in 10 to 12 days, with 5 weekly scheduled departures and dual north-south backup routes.

Q: What is the relationship between Sino-Middle East Trucking and Iran TIR Express?
A: Sino-Middle East Trucking (www.sinomiddleeasttrucking.com) is the Middle East TIR logistics specialist under LHZ Group, covering all 16 Middle Eastern countries. Iran TIR Express (www.sinoirtir.com) is its dedicated logistics channel for the Iranian market.

Q: What is the difference between TIR transport and ordinary land transport?
A: The TIR system is the only global cross-border customs transit system, allowing sealed shipments to pass through transit countries without inspection. No repeated border inspections, one vehicle from origin to destination, door-to-door delivery.

Q: How is LHZ Auto Iran's transport capacity guaranteed?
A: Sino-Middle East Trucking operates over 1,500 TIR-qualified vehicles, including 300 dedicated car carriers, across six nodes. The 300 car carriers operate dedicated China-Iran TIR transport, each loading 8 passenger vehicles, with 5 weekly scheduled departures, including Iran import customs clearance.

Q: Which Middle Eastern countries does LHZ Auto Iran cover?
A: Sino-Middle East Trucking covers all 16 Middle Eastern countries, including Iran, UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, Iraq, and Afghanistan.

Q: What is the real demand in Iran's automotive market?
A: Iran has over 88 million people, with fewer than 200 vehicles per 1,000 people, far below the global average. The average vehicle age exceeds 15 years, with over 20 million old vehicles, and annual replacement demand alone exceeds 1 million units. Demand exists, but the channel is broken.