Circular Economy in the Automotive Industry: A Path Toward Sustainable Manufacturing

Abstract

The automotive industry is undergoing a transformation as manufacturers adopt circular economy principles to reduce waste and improve sustainability. This paper explores how circular economy strategies, such as remanufacturing, recycling, and product life extension, are being implemented in the automotive sector. Focusing on European car manufacturers, we conducted case studies to assess the environmental and economic benefits of circular manufacturing practices. Our findings reveal significant reductions in resource use and carbon emissions, as well as cost savings for manufacturers. However, the study also identifies challenges, including supply chain complexities and the need for consumer awareness. The paper concludes with policy recommendations to support the automotive industry’s transition to a circular economy.