Towards Sustainability in the Automotive Industry – Circular Economic Practices of the Audi Group

Abstract

Circular Economy is an economic concept that aims to maximise resource efficiency and minimise waste generation by recycling, reusing, remanufacturing, and repairing products to extend their lifespan and extract maximum value from them. Historically, the automotive industry has not focused on sustainable practices. In the last decade, automotive manufacturers have increasingly adopted circular economy practices driven by a combination of environmental concerns, resource scarcity, regulatory pressures, consumer demand, and the pursuit of new business opportunities. By embracing circularity, the industry aims to reduce its environmental impact, optimise resource use, and build a more sustainable and resilient future. The paper provides a review to present the concept of circular economy and to evaluate its current state in the automotive industry. The case study aims to provide a glimpse into the initiatives and strategies being made by the Audi Group to become circular. The research is descriptive and includes mainly qualitative methods using a content analysis of corporate sustainability reports, websites, and interviews to gather data.