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collaboration across the entire supply chain is essential, ensuring that materials are efficiently collected for
recovery, reprocessing, and reuse. The implementation of EPR can serve as a potent incentive for
automobile producers to forge closed-loop recycling chains with other stakeholders, thereby fostering a
more circular economy. On the other hand, the low-carbon commitments among automotive producers
have played a pivotal role in driving the improvement of the circular supply chain. By prioritizing
environmental sustainability and efficiency, automotive firms are incentivized to adopt practices that
enhance material recycling, reduce waste, and optimize resource utilization. This not only contributes to
mitigating greenhouse gas emissions but also strengthens their competitive edge in the market, as
consumers and regulators increasingly value environmentally responsible business practices. Consequently,
the push for low-carbon competition encourages automakers to invest in and refine their circular supply
chains, fostering a more sustainable and resilient industry.

Furthermore, for the urban and regional authorities, the advent of shared mobility presents a promising
avenue for further GHG emission reductions. By diminishing the demand for automotive products while
still fulfilling travel requirements, shared mobility can contribute to an additional 4% reduction in
emissions. However, harnessing the full potential of shared mobility necessitates the development of
innovative business models and urban design strategies. This endeavor requires a multidisciplinary
approach, bringing together policymakers, industry leaders, urban planners, and other stakeholders to
cultivate a supportive ecosystem that enables shared mobility to flourish. By fostering collaboration and
innovation across these diverse domains, we can pave the way for a more sustainable and environmentally
friendly future in the automobile sector.

Last but not least, this research emphasizes the pivotal role of educational innovation in fostering a
generation of design and business students who can adopt a broader, more holistic view of the automotive
industry’s transition toward low-carbon products. Central to this endeavor is the integration of circular
design principles with low-carbon design methodologies, creating a synergy that promises transformative
impact. The economic and strategic dimensions of low-carbon design and circular economy practices need
to be integrated to respond to the financial incentives, policy landscapes, and market trends that drive low-
carbon development in the automotive sector. Crucially, it is essential to foster interdisciplinary
collaboration between design and business students by promoting a deeper appreciation of the
interconnectedness of design, business, and sustainability.

CONCLUSION
China’s automobile manufacturing industry possesses substantial potential for mitigating GHG emissions
through the adoption of circular economy strategies. Our analysis unveils that emissions from spillover
components, impacting the upstream raw material supply chain, constitute over 98% of the sector’s total
emissions. This highlights the crucial need to consider the broader economic system in formulating
decarbonization strategies.

The study illustrates that while transitioning to a low-carbon energy structure can significantly cut GHG
emissions by approximately 60%, there remains considerable scope for further reductions through circular
economy practices. Specifically, boosting the closed-loop recycling rates of materials like steel and plastics
can yield an additional 10% reduction in GHG emissions. Furthermore, the development of shared mobility
services presents an opportunity to decrease demand for automotive products, leading to an extra 4% to
18% reduction in emissions, contingent on the development of new mobility models.