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There's plastic underneath the leather so once the leather comes off it still is a nice wheel. But originally they were only available in leather.

My car's (original) steering wheel is in plastic, not in leather either.
And I am pretty sure it was like that from new, as it is from new that we have owned this car lol
However, I love the leather option, it is fantastic, I may have it trimmed in leather one of these days

Rethinking about it, I think I remember having read an old brochure about pre face lift Bmw E21 (sure I have this somewhere) that leather steering wheel was a standard equipment for the 320i so it probably was an option for smaller cars?