The circular economy (CE) is emerging as a transformative framework addressing global environmental challenges, transitioning from linear “take-make-dispose” models to systems promoting resource efficiency, waste minimization, and regenerative practices. Rooted in sustainable development goals (SDGs), CE offers environmental, economic, and social benefits by decoupling economic growth from resource consumption. In the automotive sector, characterized by complex supply chains and significant environmental impact, CE strategies such as recycling, remanufacturing, and shared mobility present pathways for reducing emissions, conserving resources, and creating new economic opportunities. However, barriers including supply chain complexities, regional regulatory disparities, and consumer skepticism remain substantial. Policies play a crucial role in enabling CE adoption. Initiatives like Japan's recycling laws and global standards like ISO 59000 foster regulatory alignment and encourage sustainable practices. Honda exemplifies CE leadership through its “Triple Action to ZERO” strategy, integrating carbon neutrality, clean energy, and resource circulation, showcasing the potential for industry transformation through innovative, sustainable practices.