CIRCULAR ECONOMY IN THE AUTOMOTIVE INDUSTRY: AN EMPIRICAL ANALYSIS ON OFFICIAL PORTUGUESE DEALERSHIPS

This study investigates the implementation of circular economy (CE) practices within the automotive industry. More specifically, it analyses how CE principles are implemented and the barriers and enablers of this implementation as perceived by official Portuguese automotive dealerships. To obtain a more complete picture of the role of the circular economy in the automotive context, the study also explores the customer perspective on CE practices, preferences and perceived barriers to CE solutions in the automotive industry. The study adopts a qualitative, exploratory case study approach. The case study focuses on three Volkswagen Group brands: SEAT, CUPRA and Audi. Data were collected through semi-structured interviews with senior sales managers responsible for three of the brands. Moreover, to capture the customer's perspective, the study also applied an online survey to automotive customers to evaluate their preferences and perceived barriers to CE solutions. The findings show that all three brands have implemented circular economy (CE) practices, including leasing, vehicle reuse and reconditioning, albeit with different levels of maturity and visibility. While corporate consumers typically drive demand for circular solutions, individual consumers are more price sensitive. These findings provide a more holistic view of the adoption of the circular economy in the Portuguese automotive sector, with significant implications for policymakers, industry stakeholders, and researchers.