Market Trends of China Automotive Seats Industry
Growing Demand for Ventilated Seats to Enhance Market Growth During Forecast Period
The Ventilated segment of the market studied is expected to poise notable growth during the forecast period. Rising vehicle production and demand for comfort and luxury features in vehicle interiors are expected to act as major driving factors for the automotive seat market in China. Further, the future of the automotive ventilated seat market in China looks promising with opportunities in the mid-size car, large car, SUVs, and crossover segments. For example, In September 2021, In order to improve its penetration in the Chinese market, Grammer opened a new automotive production site in Shenyang.
Moreover, in China, cars of the foreign OEMs had the seat ventilation feature whereas the domestic OEMs like Wuling, Changan, Baojun, and Geely had included this feature only for their high-end models. Manufacturers are installing every possible technology that can increase the vehicle's comfort standards. Until now, ventilated seats are majorly found in premium vehicles but the manufacturers are looking forward to offering this technology in mid-range and economy cars also. Besides these, key players operating in the market are entering into colloborations with car manufacturers, designing strategies to tackle demand from electric and autonomous vehicles, etc.
- In July 2022, Chinese electric vehicle maker BYD announced the details of its new vehicle model Seal. This model features seat ventilation/heating and other features. The manufacturer revealed that the number of pre-orders exceeded 60,000 (since May 20), which is a substantial number.
- In April 2021, Grammer AG and FAW Group have signed a joint venture in order to produce high-quality seats for commercial vehicles in China. The company will produce its high-end driver seat series as part of the new joint venture as well. In doing so, Grammer is planning to establish additional capacity locally in addition to existing production sites and component plants in china.
Apart from these, factors such as varying high temperatures and demand for comfortable expected to act as market growth catalysts in coming years. Therefore, such developments wrt ventilated seats indicate a significant increase in market share of the market during the forecast period.
Leather Expected to be Dominate Material Segment of the Market
The leather segment of the market studied is likely to witness decent growth during the forecast period. Leather is majorly used in the premium segment of cars, as leather is seen as a luxury in cars. Though it is costly and requires high maintenance, most end users prefer this material to meet their upholstery requirements as it offers a premium look and gives certain utilitarian benefits over ordinary materials used in car interiors.
The growing sales of premium cars will be an opportunity for the genuine leather segment, as customers are demanding tailor-made solutions, and this trend has picked up the pace by introducing combined modules, to compose the car seats in luxury cars. For instance, China's luxury car market has maintained strong growth in recent years. According to data from China Passenger Car Association, in 2021, the cumulative sales of luxury brand cars, including Tesla, stood at 2.65 million units, a year-on-year increase of 5 percent.
Some of the major players having a strong presence in the market include Faurecia, Yanfeng Adient Seating, Lear Corporation, Toyota Boshoku, TS TECH, and Others. These players are designing certain growth strategies like partnerships, collaborations, etc. to capture the growing market share in the country. For instance,
- In August 2022, Seiren announced that it will increase production capacity for its QUOLE automotive synthetic leather material for seats, which is growing in demand. The company plans to install additional production lines at its plants in China to increase its global production capacity of QUOLE by about 20%. The QUOLE material, which is lightweight and highly design-oriented, is being increasingly adopted as a seat material that can replace genuine leather.
- In May 2021, Faurecia announced that it has provided entire luxurious seating offer for the Li Xiang One from the fully adjustable frame to the Nappa leather covering. The company has focused on safety and comfort means an 8-way adjustable seat, 4-way lumbar support, and an in-seat heating and ventilation system. It also worked on creating a premium aesthetic in the Li Xiang One cockpit.
The above-mentioned factors are expected to contribute significantly for overall development of ventilated segment of automotive seat market in China.
