Impact of COVID-19 on the Global Automotive Upholstery Market
Automotive upholstery mainly refers to the reupholstering and re-covering of the interior of any car, which includes carpets, seat covers, trunk space, and door insides. The increasing demand for passenger cars and commercial vehicles, as well as the need for in-vehicle comfort and customized interiors inside the vehicles, are responsible for driving the growth of the automotive upholstery market. The COVID-19 pandemic has spread across the world. The automotive industry is one of the industries most affected due to COVID-19. The governments of various countries have imposed lockdowns, which has resulted in a sharp decline in the production of the new vehicles, resulting in the temporary closure of all businesses, consequently hindering the growth of the market. The disruptions in supply chain activities are also negatively impacting market growth. Auto companies that resumed operations from the Q3 of 2020 are facing tremendous challenges such as production shortages due to their manufacturing plants operating at just 50% capacity, unavailability of workers, a decline in the demand for vehicles, and shortages in the supply of auto parts and other raw materials.
Automotive upholstery is more or less customizable, with pricing being the main factor during decision making, along with the fitment cost. The changing customer behavior due to financial uncertainties is hampering the sales of vehicles, which, in turn, is hindering the growth of the market. The spread of COVID-19 from China has halted the export of automotive parts to other countries, which has limited the production of passenger vehicles, commercial vehicles, and two-wheelers. The resumption of manufacturing plants is expected to launch cars with pleasant interiors, which, in turn, is estimated to drive market growth.
Passenger Car Production in Selected Countries 2019 (Units in Million)