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Analysing the roadblocks of circular economy adoption in the automobile sector: Reducing waste and environmental perspectives

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  • Rohit Agrawal
  • Vishal A. Wankhede
  • Anil Kumar
  • Sunil Luthra

Abstract

The automobile industry is one of the most rapidly growing sectors in our society. The increase in demand for vehicles drives the growth of the automobile sector worldwide. Fabrication of vehicles consumes an enormous amount of water, energy and resources, thereby increasing carbon emissions. Nonbiodegradable and manufacturing waste after the end of life usage results in a significant contribution to incineration, landfills, air acidification and water eutrophication. The adoption of circular economy (CE) initiatives can play a significant role in dealing with increasing waste and environmental pollution. The main goal of CE is to recycle and reuse materials to reduce waste and also to minimise environmental impacts. This article strongly supports the adoption of CE in the Indian automobile industry. For the successful adoption of CE in the Indian automobile sector, first, it is important to analyse roadblocks to the adoption. Twenty potential roadblocks towards the adoption of CE have been identified from a literature review and in consultation with experts in the field. To capture the vagueness of the data and to carry out a robust analysis, a Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method with Fuzzy theory is employed. The results reveal that roadblock ‘lacking ability to deliver high‐quality remanufactured products’ is ranked first among all considered roadblocks. This study will help the Indian automobile industry, decision makers, research practitioners and government officials develop effective strategies for adopting CE in Indian automobile companies. A sensitivity analysis has been conducted to validate the stability of results.

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  • Rohit Agrawal & Vishal A. Wankhede & Anil Kumar & Sunil Luthra, 2021. "Analysing the roadblocks of circular economy adoption in the automobile sector: Reducing waste and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1051-1066, February.
    • Handle: RePEc:bla:bstrat:v:30:y:2021:i:2:p:1051-1066
    DOI: 10.1002/bse.2669
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    11. Alkaraan, Fadi & Elmarzouky, Mahmoud & Hussainey, Khaled & Venkatesh, V.G., 2023. "Sustainable strategic investment decision-making practices in UK companies: The influence of governance mechanisms on synergy between industry 4.0 and circular economy," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    12. Abdullah Kaid Al‐Swidi & Joseph F. Hair & Mohammed A. Al‐Hakimi, 2023. "Sustainable development‐oriented regulatory and competitive pressures to shift toward a circular economy: The role of environmental orientation and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4782-4797, November.
    13. Edgars Sedovs & Tatjana Volkova, 2024. "Sustainability: Is It a Strategic Management Research Fashion?," Sustainability, MDPI, vol. 16(17), pages 1-24, August.
    14. F. Alkaraan & M. Elmarzouky & K. Hussainey & V.G. Venkatesh, 2023. "Sustainable Strategic Investment Decision-Making Practices in UK Companies: The Influence of Governance Mechanisms on Synergy between Industry 4.0 and Circular Economy," Post-Print hal-04435466, HAL.
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    17. Dalia Štreimikienė & Ahmad Bathaei & Justas Streimikis, 2024. "MCDM Approaches for Supplier Selection in Sustainable Supply Chain Management," Sustainability, MDPI, vol. 16(23), pages 1-15, November.
    18. Shuiying Zhao & Yi Xu & Conghu Liu & Fangfang Wei, 2022. "Impact of Carbon Tax and Subsidy Policies on Original Equipment Manufacturers and Remanufacturing Companies from the Perspective of Carbon Emissions," IJERPH, MDPI, vol. 19(10), pages 1-16, May.
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    20. Kannan Govindan & Arash Khalili Nasr & Farzane Karimi & Hassan Mina, 2022. "Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1566-1586, May.

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