The automotive industry in India is facing an unprecedented transformation as it grapples with the imperative of sustainability in the wake of accelerating climate change and resource depletion. Recent research conducted by Potharaju, Wukkadada, and Nijhawan explores the impact of circular economy adoption on sustainable business performance within the realm of Indian automobile manufacturing firms. This study, set to be published in the journal Discover Sustainability, utilises advanced analytical frameworks, including DEMATEL (Decision Making Trial and Evaluation Laboratory), PLS-SEM (Partial Least Squares Structural Equation Modeling), and ANN (Artificial Neural Networks), to elucidate the potential benefits of circular practices for businesses in this sector.
The circular economy paradigm represents a revolutionary shift in the way businesses conceptualise production and consumption processes. Rather than adhering to the traditional linear model of “take-make-dispose,” the circular economy champions a restorative approach that emphasizes longevity, renewal, and the continual use of resources. The study aims to quantify how adopting such circular practices can amplify the sustainable business performance of Indian automobile manufacturers, which are critical players in the nation’s economy.
In this context, the authors harness the power of DEMATEL to visually represent and quantify the interrelations between various factors influencing sustainable performance. This technique enhances understanding of causal relationships, allowing manufacturers to discern which circular economy practices yield the most significant impacts on sustainability. The research findings are expected to guide strategic decisions, helping firms to focus their resources on initiatives that will yield the most substantial benefits.
PELS-SEM is another analytical tool used in the study, renowned for its efficacy in exploring complex relationships within latent constructs. By applying this method, the authors can assess the measurement and structural models related to sustainable business performance and circular economy activities. This multifaceted approach provides comprehensive insights into how specific practices correlate with performance metrics, thereby informing businesses on which circular strategies merit implementation.
Interestingly, the research also incorporates artificial intelligence through ANN, a method that mimics the human brain’s neural networks. This technology enhances predictive analytics, offering manufacturers a robust framework for forecasting the outcomes of implementing various circular economy initiatives. By blending qualitative insights with quantitative data analysis, the authors provide a well-rounded perspective on the potential for sustainable transformations in the automotive sector.
The findings from this groundbreaking study are expected to resonate deeply within the industry. As Indian automobile manufacturers pivot towards sustainability, understanding the benefits and trade-offs of circular economy practices can be a game changer. Implementing effective circular strategies may not only boost environmental performance but could lead to significant cost savings and enhanced brand reputation, appealing to a growing consumer base that prioritizes sustainability.
Furthermore, the implications of this research extend beyond the automotive sector; they serve as a critical case study for other industries grappling with similar sustainability challenges. By showcasing the synergy between circular economy practices and business performance through empirical methods, the authors provide a compelling narrative that underscores the necessity of embracing change in operational paradigms.
As more companies explore these avenues, the potential for a comprehensive shift towards sustainability becomes more tangible. The insights gleaned from this study could facilitate knowledge-sharing among firms, fostering collaborative efforts that further enhance collective sustainability outcomes across sectors.
Public and governmental support will play a crucial role in reinforcing these efforts. Policymakers can leverage the study’s findings to formulate regulations and incentives that promote circular economy practices, thereby ensuring a conducive environment for innovation and sustainable development. This support is essential in overcoming existing barriers to implementing circular initiatives, which often include high initial investments and the need for technological advancements.
Overall, the research performed by Potharaju, Wukkadada, and Nijhawan serves as a clarion call for the automotive industry and beyond. As India positions itself as a leader in sustainable manufacturing, the adoption of circular economy principles could redefine operational excellence and set new standards for corporate accountability and environmental stewardship. The road ahead may be challenging, but with solid strategies backed by data-driven insights, Indian automobile manufacturers can achieve remarkable strides toward a more sustainable future.
By harnessing the knowledge gained from such research, manufacturers can better align their practices with global sustainability goals while navigating the complexities of market demands. As they embark on this journey, it is imperative to recognise the interconnectedness of environmental and economic systems, ensuring that progress on one front does not come at the expense of the other.
The future of the Indian automotive industry hinges on its ability to innovate and adapt in the face of mounting environmental pressures. The adoption of circular economy principles, as evidenced by ongoing research, not only paves the way for sustainable business practices but also cultivates resilience in an ever-evolving market landscape. As we stand on the brink of this critical transition, the insights emerging from such studies will undoubtedly guide the industry towards a more sustainable and prosperous future.
Subject of Research: The impact of circular economy adoption on sustainable business performance in Indian automobile manufacturing firms.
Article Title: Impact of circular economy adoption on sustainable business performance in Indian automobile manufacturing firms using a DEMATEL, PLS-SEM, and ANN framework.
Article References:
Potharaju, S., Wukkadada, B., Nijhawan, G. et al. Impact of circular economy adoption on sustainable business performance in Indian automobile manufacturing firms using a DEMATEL, PLS-SEM, and ANN framework.
Discov Sustain (2026). https://doi.org/10.1007/s43621-026-02698-9
Image Credits: AI Generated
DOI:
Keywords: Circular Economy, Sustainable Business Performance, Indian Automobile Manufacturing, DEMATEL, PLS-SEM, ANN, Environmental Sustainability.
