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Leather pipeline: Move away from diesel will not affect leather industry

In light of the summer lull in the leather industry, the latest edition of our exclusive fortnightly market intelligence report, Leather Pipeline, takes a closer look at the automotive sector.

In the August 8 edition, the report says that a shift away from diesel to petrol, hybrid or electric cars in the wake of an ongoing emission scandal will not affect the leather industry as long as consumers continue to purchase the same number of vehicles.

The scandal has taken a new twist in recent weeks with reports that a number of leading German carmakers colluded to fix the prices of certain components and technologies, including those related to false emissions readings. 

The report suggests that Tesla’s decision to shun leather for the interior of its new Model 3 is more likely to have an impact on the leather industry. It says it remains to be seen how Tesla’s customers will react to this development and hints that a backlash from consumers who want to have the option of a leather interior could lead Tesla to rethink its decision.

The full report can be read here.

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