<p>To facilitate a fruitful evolution to a circular economy and promote sustainable manufacturing practices within the automotive industries, it is imperative to understand and address the primary barriers. Using the DEMATEL method, the study uncovers, analysis, and discusses the influential and affected CE barriers. Identifying these barriers sheds light on the underlying issues of CE practices, emphasizing the need to overcome them to achieve CE goals. This research aims to analysis of circular economy barriers within the automotive industries in Rajasthan, India. Through the study of literature and discussions with professionals and specialists, the research find nine barriers that hinder the acceptance of circular economy in Rajasthan automotive businesses. These findings were systematically categorized into four clusters. To verify these barriers, a survey question form was developed, and a thorough analysis was performed on collected data. The quality of major barriers was assessed using Cronbach’s alpha. Given that a significant portion of Rajasthan automotive industries comprise smaller and medium-sized enterprises, a record of question form was meticulously arranged and distributed to respondents via email, supplemented by personal visits to neighboring industries. The response rate was notably robust. Subsequently, DEMATEL method was utilized to rank them. The study revealed that technological and environment barriers present major challenges to the acceptance of CE in Rajasthan automotive sectors. Due to this research, industries will be better able to recognize the barriers to establishing a CE and create workable implementation plans in response. This research study offers a road map for managers and decision makers interested in applying CE practices in Indian automotive sectors.</p>