Market Trends of Asia-Pacific Automotive Upholstery Industry
Increase in Passenger Car Sales Propelling OEM Sales Channel Growth
It is anticipated that around 37.5 million passenger automobiles will be sold in the Asia-Pacific area, including the Middle East, by 2022, with China accounting for nearly 23.6 million of these sales. In comparison, it was anticipated that 34.57 million passenger automobiles were to be sold in the Asia-Pacific area in 2021.
Further, the industry is also witnessing a consumer preference for SUVs and MPVs that generally have more seats compared to hatchbacks and sedans. This soaring demand for SUVs resulted in a rise in vehicle production and the subsequent growth in the demand for related components, like upholstery and seats, in the region.
Another factor that is likely to fuel the demand for automotive upholstery in Asia-Pacific is the rising production of electric vehicles. As China is the leader in the electric vehicle market, the demand for upholstery is likely to witness significant growth over the forecast period in the country.
Top automotive seats and upholstery manufacturers have started investing in research and development of new and lighter-weight materials and also focusing on mergers and acquisitions. For instance,
In January 2023, Samvardhana Motherson International Ltd. acquired a 51% share in Saddles International Automotive and Aviation Interiors Private Limited (SIAAIPL) for an Enterprise Value of INR 2.07 billion (USD 24884153). SIAAIPL is a maker of luxury upholstery for applications such as passenger car seat coverings, gear knob covers, door panel wrapping, and so on. In India, the corporation has seven production locations.
China Leading the Automotive Upholstery Market
China, the world's largest automobile manufacturing country, produces 30% of total car production, making it the largest importer of automotive and upholstery leather. As Chinese customer demand shifts as a result of increased awareness about climate change and lowering carbon footprints, the need for China's independent automotive manufacturers to source sustainable leather has increased, and major automobile manufacturers are now focusing on globally manufactured sustainable leather.
There is an increasing demand for customization among car owners due to rising disposable incomes in the Asia-Pacific region. Automakers and OEMs in the region are now providing leather upholstery in their mid-range vehicles, thereby driving the development of the leather-type automotive upholstery market. The rising buyer inclination towards retrofitting automobiles with leather upholstery is also propelling the market growth through the aftermarket channel.
China has many industry participants, wherein most of the global market leaders have joint ventures with local manufacturers. However, China remained the leading market for passenger car sales in 2022, with over 23.56 million units sold. Hence, the increasing sales of passenger cars in the country are expected to drive the automotive upholstery market in the country.
