Strategic Analysis of the Automotive Circular Economy

Increased Adoption of Circular Economy Practices Leading to Transformational Growth Across the Automotive Value Chain

The automotive industry has evolved from implementing circular economy practices only at the process level to adopting them at all parts of the value chain. This research service provides insights into strategies adopted by automotive original equipment manufacturers (OEMs) to align with circular economy goals in each stage of the automotive lifecycle. Circular economy practices aim to minimize the use of virgin materials in manufacturing processes and focus on reclaiming, reusing, and remanufacturing components to ensure greater sustainability. Growing concerns over global warming and increased carbon emissions are driving the government and regulatory bodies to implement stringent compliance measures for the automotive industry, pushing OEMs to shift towards green practices. The advent of digital technologies and the development of sustainable materials are helping automotive OEMs meet sustainability goals and ensure compliance with guidelines set by regulatory bodies. The study elucidates the need to adopt sustainable manufacturing methods and highlights the benefits they bring to OEMs and the environment.

Key areas the study provides insight on:

• Emerging business models aligned with circular economy practices
• Best practices, including design principles, being adopted by OEMs at their manufacturing plants to ensure 100% renewable energy utilization
• Sustainable materials used in automotive components as alternatives to plastics, rubber, and leather
• Initiatives adopted by automotive OEMs to ensure sustainability at their dealerships
• Sustainable mobility solutions, like the use of electric vehicles (EVs) and hybrids by ridesharing and carsharing services
• Diagnostic and vehicle monitoring methods used by EV battery suppliers to maintain and recycle automotive batteries
• Methods adopted to extend the life of automotive components (such as plastics, tires, aluminum, EV batteries, etc.)
• Digital technologies and processes adopted to enable circular economy goals
• Potential second life of different automotive components