<p>Previous investigation on implementing lean six sigma and industry 4.0 frameworks in automotive manufacturing to establish a circular economy have identified several challenges. These include integrating traditional lean six sigma practices with advanced industry 4.0 technologies, dealing with high initial investment costs, managing complexities in data handling, securing organizational buy-in, and addressing skill gaps required for effective deployment. This research proposes a strategy to integrate industry 4.0 technologies and lean six sigma principles in an automotive manufacturing company focus to move towards a circular economy. The combination of industry 4.0 advancements with lean six sigma methodologies is aimed at improving resource implementation, reducing waste, and improving operational efficiency supported with the Partial Least Square-Structural Equation Modelling (PLS-SEM). Innovations such as the Internet of Things (IoT), Artificial Intelligence (AI), and advanced data analytics, when combined with lean six sigma process optimization, to help achieve higher efficiency, improved product quality, reduced costs, and a diminished environmental impact. The strategy prioritizes promoting a circular economy through initiatives focused on material reuse, remanufacturing, and recycling within the automotive supply chain. The research highlights the practical benefits and transformative potential of these initiatives, supported by case studies demonstrating reductions in rejection rates from 1.31 to 1.10%. Therefore, the proposed approach underscores the importance of comprehensive training, expert guidance, and organizational adaptation for successful implementation.</p>