Abstract

The transition to a circular economy (CE) in the automotive sector is increasingly critical amid rising resource pressures and climate imperatives. In India, this shift is influenced by regulatory initiatives, corporate sustainability goals, and life-cycle-wide environmental challenges. However, current studies remain fragmented, often neglecting the linkages between policy drivers, material issues, and firm-level responses. This study aims to evaluate how CE strategies are operationalized across the Indian automotive value chain using a Drivers–Materiality–Response (DMR) analytical framework. A multiple-case qualitative analysis was conducted involving six major automotive firms and associated ecosystem actors, with data sourced from corporate reports, national policies, and third-party assessments from 2018 to 2024. Semi-structured interviews with 11 industry experts were incorporated to strengthen triangulation, validate firm-level circular economy claims, and support the reliability of the DMR-based interpretation. Findings reveal strong alignment with national CE policies among leading firms, particularly Tata Motors and Mahindra, with comprehensive integration of electrification, battery reuse, zero-waste goals, and digital mobility solutions. However, challenges remain in end-of-life vehicle (ELV) formalization and circularity in downstream systems. The DMR model effectively bridges gaps in existing frameworks by offering a life-cycle-based lens that links Environmental, Social and Governance (ESG), Life Cycle Assessment (LCA), and policy–firm dynamics. The study contributes a scalable diagnostic tool for assessing CE maturity in emerging economies. While limited by reliance on secondary data, the triangulated approach enhances reliability and provides actionable insights for policymakers and industry leaders.

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