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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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    6. Fatin Amrina A. Rashid & Hawa Hishamuddin & Nizaroyani Saibani & Mohd Radzi Abu Mansor & Zambri Harun, 2022. "A Review of Supply Chain Uncertainty Management in the End-of-Life Vehicle Industry," Sustainability, MDPI, vol. 14(19), pages 1-28, October.
    7. 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.
    8. 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.
    9. Manish Mohan Baral & Subhodeep Mukherjee & Rajesh Kr Singh & Venkataiah Chittipaka & Yigit Kazancoglu, 2023. "Exploring antecedents for the circular economy capability of micro, small and medium enterprises: An empirical study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5785-5806, December.
    10. Ahsan Siraj & Shilpa Taneja & Yongming Zhu & Hongbing Jiang & Sunil Luthra & Anil Kumar, 2022. "Hey, did you see that label? It's sustainable!: Understanding the role of sustainable labelling in shaping sustainable purchase behaviour for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 2820-2838, November.
    11. Syed Abdul Rehman Khan & Muhammad Umar & Alam Asadov & Muhammad Tanveer & Zhang Yu, 2022. "Technological Revolution and Circular Economy Practices: A Mechanism of Green Economy," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
    12. Ana Carolina Bertassini & Aldo Roberto Ometto & Semih Severengiz & Mateus Cecilio Gerolamo, 2021. "Circular economy and sustainability: The role of organizational behaviour in the transition journey," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3160-3193, November.
    13. Abrar Mahjoob & Yousef Alfadhli & Vincent Omachonu, 2023. "Healthcare Waste and Sustainability: Implications for a Circular Economy," Sustainability, MDPI, vol. 15(10), pages 1-20, May.
    14. Jayakrishna Kandasamy & Yatin P. Kinare & Miheer T. Pawar & Abhijit Majumdar & Vimal K.E.K. & Rohit Agrawal, 2022. "Circular economy adoption challenges in medical waste management for sustainable development: An empirical study," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(5), pages 958-975, October.
    15. Wen-Kuo Chen & Ching-Torng Lin, 2021. "Interrelationship among CE Adoption Obstacles of Supply Chain in the Textile Sector: Based on the DEMATEL-ISM Approach," Mathematics, MDPI, vol. 9(12), pages 1-24, June.
    16. Rohit Agrawal & Vishal A. Wankhede & Anil Kumar & Sunil Luthra & Donald Huisingh, 2022. "Progress and trends in integrating Industry 4.0 within Circular Economy: A comprehensive literature review and future research propositions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 559-579, January.

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