AI-Enhanced Circular Economy and Sustainability in the Indian Electric Two-Wheeler Industry: A Review

Abstract

Drastically cutting carbon footprints to reduce global warming is now a universal norm, in keeping with the United Nations’ Convention on Climate Change 2015. The global proliferation of electric vehicles (EVs) is, hence, appropriate. India (Niti Aayog) has given a determined call for ‘only EV’ on road by 2030, a transition which will be led by electric two-wheelers (E2Ws) with 80% of the market. The Indian E2W (IE2W) industry needs to adopt green manufacturing and sustainable supply chain management (SSCM), addressing environmental, economic, and social issues. The battery supply chain (an environmental gray area) must also follow circularity and sustainability principles. With artificial intelligence (AI) having come into play in industry and manufacturing, it will undoubtedly influence the circular economy (CE) and sustainability concerns in the IE2W space. This review aims to critically study the available literature on AI’s contribution to CE and sustainability in the IE2W sector. The study has revealed a lack of sufficient research, specifically in the IE2W sector, including AI’s effect on waste management, government policies, etc. For the government, the study recommends a higher outlay for R&D, bridging skill gaps, and strengthening regulatory frameworks and ethics; and, for the IE2W industry, this study recommends increased focus on CE, public awareness, compliance with ethical norms for AI deployment, and prioritizing a fleet-first model. The study is expected to enhance value for the IE2W sector, the government, the public, and the environment.