The Asia-Pacific automotive upholstery market is poised to register a CAGR of over 7% during the forecast period (2020-2025).
- The vehicle interior is becoming more elaborate, with contrasting surfaces and textures used to bring in the decorative and functional effect, which in turn driving the automakers to opt for new materials for the upholstery, with enhanced environmental performance.
- The slowdown of vehicle sales in 2019 noticed in the Asia Pacific region due to trade conflicts, especially in major markets like China, Japan, and India, hindered the growth of the market. However, the Asia Pacific region is expected to exhibit a better growth rate during the forecast period due to the various plans implemented by automotive OEMs. For instance, China Great Wall Motors is planning to enter the Indian market by acquiring one of the General Motors plants in the country.
- Due to intense competitive rivalry and margin pressure in the market, manufacturers are actively setting up bases in the emerging markets, such as India and China, to take advantage of the low labor costs. This trend may change the dynamics of the industry in the long run, and upholstery and seat manufacturers may have to start setting up facilities in these emerging markets to stay competitive.
Key Market Trends
Increase in SUV Sales Propelling Market Growth
The industry is 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.
In 2020, Porsche India introduced a 3D-printed bucket seat in which a 3D printer partly produces the seat and the backrest cushions. The base is made from expanded polypropylene (EPP) bonded with a mixture of polyurethane-based material by 3D-printing.
China Leading the Automotive Upholstery Market
There is an increasing demand for customization among the 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 also, thereby driving the development of the leather-type automotive upholstery market. The rising buyer inclination towards retrofitting of 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 the local manufacturers. Adient PLC, which is one of the leading players in the automotive upholstery market, has many joint ventures in the country.
For instance, in 2020, Adient made specific changes to their existing joint venture relationships with Yanfeng Automotive Trim Systems Co. Ltd (Yanfeng). Adient agreed to sell its 30% ownership stake in Yanfeng Global Automotive Interior Systems Co. Ltd (YFAI) to Yanfeng for USD 379 million. Adient and Yanfeng are also extending the term of their Yanfeng Adient Seating Co. Ltd’s (YFAS) joint venture to 2038.
Also, in 2017, Lear Corporation inaugurated its Asia headquarters and technical center located in the Yangpu District of Shanghai, China. Lear has a good presence in Asia with more than 67 locations. It also has about nine unconsolidated joint ventures in the region.
The Asia-Pacific automotive upholstery market is consolidated and majorly dominated by few players like Adient PLC and Faurecia. The market is mainly driven by factors like advanced technologies, the use of lighter materials, more comfort, and the growing demand for electric and autonomous vehicles around the region. To provide more luxurious experience to the people, major automotive upholstery manufacturers are making joint venture with component manufacturers. For instance,
- In 2018, Adient formed a joint venture with Arvind Limited, to manufacture and sell automotive fabrics for seating systems in India.
- In 2017, Faurecia formed a joint venture with Liuzhou Wuling Industry, and the JV manufactures and sells complete sets, frames, and other upholstery components.
Additionally, in 2019, Toyota Boshoku Corporation announced that it would open an office in Gurgaon, India. This facility will be dedicated to sales and development in the country. The company will try to strengthen its presence by offering seats and interior components to the automobile manufacturers.
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Table of Contents
1.2 Scope of the Study
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.3 Other Material Types
5.2 By Sales Channel Type
5.3 By Product Type
5.3.3 Roof Liners
5.3.4 Door Trim
5.4 By Country
5.4.4 South Korea
5.4.5 Rest of Asia-Pacific
6.2 Company Profiles
6.2.1 Adient PLC
6.2.2 Faurecia SE
6.2.3 Lear Corporation
6.2.4 Toyota Boshoku Corporation
6.2.5 Seiren Co. Ltd
6.2.6 Marvel group
6.2.7 Suminoe Textile Co. Ltd
A selection of companies mentioned in this report includes:
- Adient PLC
- Faurecia SE
- Lear Corporation
- Toyota Boshoku Corporation
- Seiren Co. Ltd
- Marvel group
- Suminoe Textile Co. Ltd