The materials used in automotive interior carpets include from tufted and needlepunched nonwovens. Generally speaking, the tufted carpets are used in more expensive, luxury cars while needlepunched nonwovens are used in intermediate or lower grade cars.

Table one shows demand for automotive floor carpets in Japan. From 2007-2014, demand has dipped in both areas as automotive production stagnated. Like all automotive components, demand for automotive carpeting is tied to new cars builds, which has shown little or no year-on-year growth in Japan since 2009—resulting in lower sales for suppliers.

Within this market, needlepunch nonwovens comprise an overwhelming majority of marketshare, accounting for 90% of carpets in 2014.

This was an increase from the 82% share it held in 2007. From 2007, demand for tufted materials in the market was down 50% while demand for needlepunch was down only slightly or around 10%.

According to executives familiar with automotive design trends, tufted materials have lost marketshare because many carpets are two-layered structures meaning the aesthetics of the materials are not particularly influential in car making decisions. This has led to increased use of lower cost needlepunched materials in Japan whereas tufted materials are used only in the very highest end cars and in some automotives being sold to the U.S. markets.

The main manufacturers of needlepunched carpets include Osuka, Sun Chemical, Suminoe Textil and Toabo Materials. These main producers supply carpets to car makers in Japan and overseas. Meanwhile, Kurah, Dynic, Japan Vilene, Fuju Corporation, Sun-Add and Kanai Juyo Kogyo have also produced needlepunched carpets.

Many of these producers have been investing in new facilities outside of Japan in areas including China, Indonesia, Thailand and the U.S. Additionally, Suminoe Textile started production in Mexico in March 2015. Currently, the overseas output of Japanese needlepunch manufacturers is about 20,000 tons and this figure it set to rise as demand for automotive interior carpeting continues to climb in Asia and other foreign markets.