Assessing Economic Impacts: Circular Economy Adoption in the Indian Automotive Industry

In light of the increasing global emphasis on waste management, the Circular Economy (CE) has emerged as a pivotal framework. This study aims to assess the cost implications for car manufacturing associated with integrating the CE principles into the current operations of the Automobile Industry (AI). Additionally, it seeks to quantify the comparative expenses of incorporating waste management procedures in manufacturing versus traditional methods. Central to this analysis is the examination of the stakeholders' tolerance towards this cost disparity, whether market forces or governmental regulations play a role in mitigating it. Drawing upon assumptions and data sourced from pertinent reports, official platforms, and scholarly literature, this descriptive study is tailored to the standpoint of the Indian auto industry's adoption of CE practices. Furthermore, it endeavors to inform the development of regulatory frameworks by the government for managing automotive waste. By illuminating the negligible difference in costs, this research underscores the imperative for governmental intervention to enforce CE principles, irrespective of whether these costs are absorbed by companies or consumers. It contends that existing strategies may fall short of meeting future demands, necessitating more robust regulatory measures to drive circularity in automotive production and consumption.