Abstract

Servitization as a concept evolved from the idea of integrating product service systems that offer sustainable solutions to companies, adhering to the ESG (environmental, social and governance) and CSR (corporate social responsibility) perspectives. The managerial practices that support this concept are relatively sparse. Therefore, this research paper aims to investigate the concept of servitization and its significance in the context of decarbonization and digitalization, as well as its impact on sustainable business practices and circularity. The paper highlights the engagement of the whole business ecosystem to implement the extended product and services practices which forms the cornerstone of servitisation and circular economy, particularly in the Indianautomobileindustryandexamines howit cancontributetooptimize product use, reduce waste and emissions (decarbonization), and help companies to transition towards a circular economy. Thepaperhighlightstheneedfortechnologyaccessandfunding,high levels of human capital, and strong institutional support for the successful adoption of servitization in developing countries. It identifies factors like customer preferences, technology readiness, regulatory support, and collaboration between manufacturers, suppliers, and service providers as critical to the successfuladoptionofservitization, through a SWOT analysis.Inconclusion,theresearchhighlights the potential of servitization to contribute to more sustainable and competitive business practices.