The purpose of this research is to examine the fundamental principles of a circular economy (CE) in relation to the automotive industry in India, which plays a vital role in the country's economy. As a result, energy consumption and environmental impacts also pose significant challenges. CE provide a transformative approach through the life cycle of a vehicle, guiding the automotive industry toward a more sustainable transportation system. In order to decarbonize this industry, the global automotive commission recommends that recycled plastic content in vehicles be increased 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. polypropylene polymer and several other polyolefins are used for components like bumpers. The most prevalent recycling method for polypropylene bumpers is mechanical recycling, yet it presents notable challenges. It is important to note that paint, in particular, affects both the aesthetic quality and the structural integrity of recycled materials. This review work also explores the primary recycling methods documented in literature, particularly those that have minimal environmental impact. Further, the study provides a comprehensive analysis of India's transition toward sustainability in the automotive sector, including procedures for waste disposal and reuse. The report emphasizes 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.