Tariffs—probably the most disruptive force within global businesses in 2025—continue to change the landscape of the automotives market. Since taking office in January 2025, U.S. President Donald Trump’s policies regarding trade have significantly disrupted the global automotive industry by increasing costs, squeezing profit margins and prompting major shifts in global supply chains and manufacturing strategies. Tariffs on steel, aluminum, vehicles and parts have substantially raised production costs for automakers worldwide, and globally, these companies have reported losses of billions of dollars.

Despite their intent to boost U.S. manufacturing efforts, tariffs have impacted even vehicles made in the U.S. due to the complex, interconnected nature of automotive supply chains. This has forced companies to rework their sourcing strategies, seek production localization and manage significant uncertainties, sometimes resulting in production delays or disruptions. 

To avoid tariffs and mitigate risks, automakers have been incentivized to move production closer to their sales markets, particularly increasing manufacturing within the U.S.. For instance, Nissan shifted some Rogue SUV production to the U.S. from Japan, and several German automakers expanded their U.S. facilities. This has led to a decline in the traditional role of export hubs like Germany and Japan.

Going Local

For suppliers of nonwovens to the automotives market, those with localized production have been able to defend themselves against trade policies. Germany-based Tenowo has benefitted from its broad manufacturing footprint with sites in Germany, China and the U.S., which has allowed it to continue to serve its customers as they have shifted manufacturing locations. Particularly important is the company’s U.S. operation, located in Lincolnton, NC, which minimized disruption in supplying key customers. 

“The ability to produce needlepunched, saturate bonded (MD and CL) and stitchbonded nonwovens within the U.S. makes Tenowo less exposed to the current developments and allows it to offer a stable and flexible supply to its customers,” says global sales director, automotives, Detlev Kappel. “Although the automotive industry is still behind record sales before Covid like EU, Tenowo USA is recognized as a capable and innovative nonwoven supplier and partner.” 

Similarly, Freudenberg Performance Materials has followed the principle of local-for-local production throughout all of its market areas for decades. Thanks to its global footprint, the company is able to offer locally produced materials for local customers, enabling the company to serve key markets directly and reduce exposure to cross-border duties. This approach supports Freudenberg’s position as a global supplier of nonwovens while ensuring regional availability for specific products.

“Tariffs have created an air of uncertainty, but at Freudenberg we have always focused on a local for local or regional for regional approach. We are not a company that is manufacturing products in one place and sending them abroad,” says CEO Andreas Raps. “The problems are more driven by the market moods rather than the tariffs themselves. In fact, some of our U.S. customers have approached us locally to increase their supply so they can be less dependent on foreign supply.”

To strengthen its U.S.-based offerings, AJ Nonwovens is offering a complete portfolio of sustainable nonwoven solutions engineered for both interior and exterior vehicle applications made at its sites in St. Louis, MO; Hampton, NH and Waco, TX. From seat composites and headliners to wheel liners and underbody shields, AJ Nonwovens supports OEMs and Tier 1 suppliers in the automotives market.

“At AJ Nonwovens, we strive to be the preferred partner in our industry by consistently delivering speed, reliability and responsiveness. These are not just principles—they are daily expectations. Our commitment to these values is what allows us to lead with confidence, support our partners, and keep our operations aligned with long-term customer success,” says Sam Hyden, director of automotive sales at AJ Nonwovens.

Also benefitting from U.S. manufacturing is TWE Group, which operates facilities in Texas, North Carolina and Indiana. Recent advancements have allowed the company’s automotives market activities to now represents a share on par with the company’s long-standing hygiene business. This surge in automotive sales can be credited to new investments including a needlepunch capacity and other equipment to meet market demand. Looking ahead, new technologies for both automotives and acoustic building applications in North America are likely.

“The strong demand has resulted in high utilization rates, and we are actively exploring additional investments to further increase capacity and flexibility in the region,” says CCO Ralf Berens.

Additional focus in this market segment has centered on sustainability like integrating sustainable fibers that are biodegradable, compostable or made from recycled sources. In automotives specifically, TWE sees growing demand for natural fiber applications and materials with reduced environmental impact, which aligns with both regulatory trends and OEM preferences.

Other Influences

In addition to tariffs, macroeconomic factors such as raw material cost volatility, energy prices and regional regulatory shifts continue to influence performance. At Freudenberg, a strategy of remaining focused on resilience, cost efficiency and customer proximity has helped it defend itself against some of these challenges.

Cost pressures, overcapacity and slower-than-expected conversion to electric vehicles are some of the challenges facing suppliers to the automotives industry, according to Freudenberg, which continues to see positive momentum despite uneven recovery. 

Freudenberg is actively working to offset this negative market trend through new project acquisitions and strategic customer engagements. These initiatives help the company stabilize volumes and maintain competitiveness.

New products targeting automotives applications include embossed PES nonwovens, sustainable underbody shields, acoustic pads and seat-leather backings, which replace non-recyclable materials such as fiberglass and PU foam. 

Other products include a cargo cover made from its embossed nonwoven material, which offers several advantages over PVC and Lutraflor nonwoven materials for automotive carpets, interior mats and trunk liners that are 40% lighter than conventional materials and help to save fuel and reduce CO2 emissions. 

Especially in the APAC region, more OEMs start to select needle punch carpets to replace tufting carpets. To meet this demand even more effectively, Freudenberg is developing new spunbond materials for needlepunch carpets which can improve needlepunch carpet’s abrasion performance.

The latest Sandler offering for the automotive market is the finexus brand, which was launched in September 2024, in response to high demands for sound insulation, thermal insulation and sustainability in vehicles. These sustainable single-polymer nonwovens, made from 100% polyester, are designed for interior and exterior molded part applications in passenger cars as well as commercial vehicles and can be applied in a wide range of applications, from underbody to headliner and from wheel arch liner to trunk liner; with conventional drives or in electromobility. They offer good flexural rigidity and formability, supporting customized component geometries as well as high strength, acoustic performance and resistance to high temperatures. 

“finexus also offers benefits in weight and installation space in vehicle designs, thus reducing the consumption of resources and fuel. Up to 80% recycled content can be used in the production of these materials, significantly reducing the carbon footprint and making these nonwovens easily recyclable,” Fabian Geyer, head of sales, says. “The nonwovens, end products pressed from them, as well as trimmings generated during production can be reused for applications in the mobility sector.”

Beyond finexus, Sandler supplies nonwovens for a variety of uses in vehicles including sawasorb, an absorber nonwovens for interior applications that contribute to good acoustics inside the vehicle and also function as thermal insulation. sawasorb exterior absorbers are fluid- and dirt-repellent, offering a textile alternative for applications such as engine cover, underbody shield or wheelhouse arches. 

“The automotive market is characterized by vigorous competition but also by innovation and further development,” says Geyer.  “It continues to be impacted by economic fluctuations, as does any other sector and this presents challenges like material shortages, shortages in freight space; fluctuations in raw material prices, forwarding costs, and last but not least energy costs.”

This has been exacerbated by the entry of new competitors who also see opportunities for innovation and growth, particularly in terms of design and sustainability enhancements, for nonwoven materials.

“Harnessing this potential will be key moving forward, as well as adaptation to new regulatory requirements,” Geyer says. “Cooperation along the supply chain has been and will continue to be a crucial factor in achieving these goals.” 

Looking East

A major development for Tenowo was the decision to add a new manufacturing plant in Vietnam for special products used in the wire harness area as well as for other industrial applications. The new site, Tenowo Haiphong, started production in the beginning of the first quarter of 2025. 

“In Asia, Tenowo is bucking the trend within a highly competitive automotive environment where overall OEM manufacturing utilization versus capacity in China is at around 50%,” says CEO Salvatore Musso. “This indicates the fact that not all of these manufacturers as well as companies in the supply chain will survive in the future. Tenowo diversified its local portfolio across different applications such as seating, CIPP (cured in place pipe), wire harness, consumer goods and for PPE (personal protection equipment).”

In new product development, Tenowo’s composite nonwovens, 100% carbon nonwovens made of recycled carbon fibers next to other solutions, made further progress in penetrating the market. The company is working with strategic partners and OEMs worldwide on several applications such as for structural parts, underbody solutions or even as a security barrier for battery cells in case of a thermal event. Beside additional technical advantages, the low CO2 footprint of these products compared to traditional carbon textiles support its customers to reach emission targets and cost savings for their finished products at the same time.

Other focus areas include sustainable solutions for E-cars and PFAS free finished repellent nonwovens to comply with the latest REACH standards. Additionally, Tenowo’s Multiknit products for foam replacement in seats are now available around the globe with local production in Europe, the U.S. and China. Its sustainable product group for car seats and other industrial applications, called “Multiknit, Sustainaknit, Sustaknit and Climaknit” gained lots of interest from both its existing and new customers. The fully recyclable nonwovens can replace foam and other “bulky” materials with the advantages of less VOC, good air permeability and much more. 

“The current situation within the automotive environment is quite challenging,” says Kappel. “Lower volumes, transformation towards E-mobility, huge price pressure from the Tier-chain as several premium OEMs are struggling themselves and are faced with fierce competition from China. All this requires more focus on innovations and flexibility to identify new potentials. Another strategy is to deeper focus on non-automotive market segments where Tenowo has been successful in the past two to three years in lowering its dependency on automotive applications.”

Cupra Chooses Toray

Spanish automotive brand Cupra is using Toray Industries‘ Ultrasuede material for the interior (dashboard, door panels, center console and steering wheel) of its latest show car, the Cuprate Tindaya Showcar, and lifestyle products. The Cupra Tindaya Showcar featuring Ultrasuede nu debuted at IAA Mobility 2025 exhibition, in Munich, Germany earlier this year.

Cupra is an unconventional challenger brand that combines emotional design, electrification and performance to inspire the world from its home in Barcelona, Spain. Since its launch in 2018, the brand has transformed the automotive industry as an instigator of creativity and an agitator for change. In just seven years, Cupra has launched seven models and sold over 900,000 vehicles globally. Cupra takes its design philosophy beyond automotive, through the Cupra Design House. Ultrasuede nu used in the Cupra Tindaya Showcar is offering sophisticated design with a deep metallic sheen, a smooth and luxurious texture, and exceptional functionality. This marks the first time this metallic-finished type of Ultrasuede nu has been used in automotive interior applications. It combines polyester polymerized with Ethylene glycol derived from waste molasses of sugarcane and Polyurethane composed of polyol made of castor oil from non-edible castor-oil plant. The ratio of plant-based raw materials is approximately 30%. Ultrasuede nu, made from non-fossil-based materials, has been highly acclaimed for aligning with Cupra’s spirit of design and innovation.