New David Peters blog suggests a change in automotive leather demand
27/09/2016
In his new column, entitled ‘Reality check’, Mr Peters says: “After a sustained drive these past six years, light vehicle sales are losing traction and the long and winding road is now causing manufacturers to decelerate. North American volumes have peaked with their 2015 highs and while the proportion both of SUV and luxury cars has grown (which is positive news for the leather industry as these vehicles typically use the most leather in their interiors), overall the numbers are slowing.”
He predicts that a similar “pattern of congestion” is likely to develop in China and that as the market contracts there we will “indubitably see the brakes applied to leather seating”.
However, he makes it clear that there will continue to be demand for leather from automotive companies, just that, having been operating in the fast lane for some time, growth looks likely to slow down now.
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