13 January 2025
The automotive industry in 2024 continues to evolve, with different regions experiencing varying trends. While global vehicle sales are recovering from pandemic disruptions, the demand for premium features, such as leather interiors, remains strong.
Leather seating is often associated with luxury and comfort, but its presence varies by region. This report explores vehicle sales and the percentage of vehicles with leather interiors across four key regions: the USA, Europe, China, and Southeast Asia.
Vehicle Sales in 2024 by Region
In 2024, car sales across different regions are expected to rise, although trends will vary depending on the region.
USA
In the US, car sales are projected to reach 14.5 million units in 2024, marking an increase of about 5% from the previous year. The US market remains dominated by SUVs and trucks.
Leather seats are very common in the US. Around 40-45% of vehicles sold in 2024 are expected to feature leather interiors. This amounts to 5.8 to 6.5 million units with leather seating / interior.
Premium brands like BMW, Mercedes-Benz, and Audi offer leather as standard in higher-end models. For mass-market vehicles, leather is typically available in higher trims of SUVs and trucks.
Europe
Europe’s market is forecasted to reach 13 million vehicles in 2024. According to the European Automobile Manufacturers’ Association (ACEA), electric vehicle (EV) sales will account for more than 15% of total vehicle sales.
The shift towards electric alternatives is accelerating in line with stricter emissions regulations and environmental awareness.
In Europe, leather interiors are also popular but somewhat less so than in the US. It is estimated that around 30-35% of vehicles will have leather seats in 2024. This is equivalent to 3.9 to 4.5 million vehicles.
Leather is often found in premium models, with manufacturers like BMW and Mercedes-Benz including it in higher-end trims.
China
China is expected to maintain its position as the world’s largest automotive market, with 31.5 million vehicles projected for 2024. While electric vehicles (EVs) will continue to see strong growth, conventional vehicle sales, including sedans and SUVs, remain a significant part of the market.
In China, leather interiors are associated with luxury but are less common than in the US or Europe. Only about 20-25% of vehicles sold in China are expected to feature leather seats in 2024. This means that the number of new vehicles with leather seating and / or interior ranges from 6.3 to 7.8 million units.
Leather is often found in higher-end models, particularly those from international brands like Audi, BMW, and Mercedes-Benz.
Southeast Asia
Southeast Asia’s car sales are projected to reach 4.5 million units in 2024, driven by growing middle-class populations in countries like Thailand, Indonesia, and Vietnam. While EVs are still emerging, the demand for affordable and practical vehicles is pushing the growth of the car market in this region.
Leather interiors are less common in Southeast Asia, largely due to the region’s focus on affordable vehicles. It is estimated that only 10-15% of vehicles sold in the region will feature leather seating in 2024. (0.45 to 0.68 million units)
Leather is typically reserved for higher-end vehicles, and the increasing demand for premium cars, especially in countries like Malaysia and Thailand, may gradually push the adoption of leather interiors in these markets.
Conclusion
The global vehicle market in 2024 experienced steady growth, with notable differences in the prevalence of leather interiors across regions.
The US and Europe are strong markets for leather seating, driven by a demand for luxury and premium features.
In China, leather remains popular in high-end vehicles, and the record sales volume of more than 30 million new registrations, makes China a priority market for suppliers of leather for automotive seating and interiors.
In Southeast Asia, while the demand for affordable vehicles remains strong, the increasing interest in premium models is expected to drive the adoption of leather interiors in the future.
With the panorama of the global economy in 2025 still obscure at the time of writing, suppliers of automotive leather and the large hides required for this market segment can gain access to key buyers by participating at APLF Leather in Hong Kong (12-14 March 2025) and the All China Leather Exhibition (ACLE – 3-5 September 2025 in Shanghai).
Go to www.aplf.com for more information on these market-leading events or write to the Organisers on [email protected].
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