This research examines the fundamental principles of the Circular Economy in relation to the automotive industry in India, a sector that plays a vital role in the country's economy. However, it also presents significant challenges concerning energy consumption and environmental impact. The circular economy framework offers a transformative approach throughout a vehicle’s lifecycle, guiding the automotive industry toward a more sustainable transportation system. One of the key strategies defined by the global automotive commission for decarbonizing this sector involves increasing the recycled plastic content in vehicles to 20-25% by 2030. This target necessitates the recovery of plastics from end-of-life vehicles, though these materials are rarely integrated into compounds today. The automotive industry's reliance on plastics has grown substantially due to their lightweight properties, which enhance fuel efficiency, reduce CO₂ emissions, and improve versatility and mechanical performance. Among the most widely used polymers are polypropylene (PP) and other polyolefin, especially for components like bumpers. The most prevalent recycling method for polypropylene bumpers is mechanical recycling, yet it presents notable challenges. Impurities such as paint residues, chemical contaminants from prior use, and unwanted polymeric elements can compromise the process. Paint, in particular, affects both the aesthetic quality and the structural integrity of the recycled material. Finally, review explores the primary recycling methods documented in literature, particularly those with minimal environmental impact. Furthermore, recycling, the study provides a comprehensive analysis of India’s transition toward sustainability in the automotive sector, exploring waste disposal and reuse practices. It underscores the industry's growing pressure to adopt circular and sustainable approaches in production, vehicle design, and waste management while emphasizing the principles of reducing, reusing, and recycling plastic waste.