Indian automotive supply chains: barriers to circular economy for sustainable development

Abstract

Purpose

The present paper examines the barriers hindering the implementation of circular economy practices in Indian automotive industries and identifies the most critical barriers to be eradicated during the circular economy implementation.

Design/methodology/approach

Using a questionnaire survey-based analytic hierarchy process (AHP) approach, 21 barriers to circular economy implementation are identified through a literature review and ranked using the opinions of relevant industrial experts.

Findings

Barriers, minimal or no proper economic incentives, difficulty in ensuring product quality and costing of CE products are identified as top barriers to be eliminated first to boost the chances of successful implementation of circular economy practices in Indian automotive industries.

Practical implications

The study not only offers a roadmap on the order of elimination of barriers towards a circular economy but also provides insights from industrial experts on how these barriers can be eradicated and the ill effects of each barrier from an automotive industry perspective.

Originality/value

The authors develop a theoretical framework for barrier analysis for circular economy implementation in the Indian automotive sector using the classic AHP approach to identify the most critical barriers against successful implementation. Further, this study offers managerial implications on how these barriers can be eradicated in real.

Citation

Nandha Gopan, S. and Balaji, M. (2023), "Indian automotive supply chains: barriers to circular economy for sustainable development", Management Decision, Vol. 61 No. 11, pp. 3589-3609. https://doi.org/10.1108/MD-03-2023-0435