The shift towards sustainable and circular practices in the automotive industry is driving the development of eco-friendly materials for soft trims. This research explores the development and integration of sustainable textile solutions using recycled polyethylene terephthalate (rPET) from post-consumer waste and bio-based fibers such as banana and bamboo in various fabric forms—woven, knitted, and non-woven. Applications studied include seat fabrics, headliners, parcel shelves, and wheel arch liners. rPET textiles demonstrated promising strength, aesthetic appeal, and durability performance, while significantly reducing carbon footprint. Blends of rPET and virgin PET were optimized to balance properties with sustainability targets. Banana fibre, an agricultural by-product abundantly available in India, was explored for headliner substrates and parcel shelves, offering biodegradability and regional sourcing advantages. Bamboo fabrics, known for their natural antimicrobial properties