Sustainable Supply Chain Management and Green Logistics Practices in the Automobile Industry: A Study of Sonalika Tractors

This capstone examines how Sustainable Supply Chain Management (SSCM) and green logistics can be applied in the Indian tractor industry, using International Tractors Limited (ITL), maker of Sonalika tractors, as a case study. It explores whether a vertically integrated OEM can meet rising environmental requirements while remaining cost-effective for small farmers. ITL’s Hoshiarpur plant produces about three lakh tractors annually, and the company sold 153,764 tractors in FY2025, with a 14.8% domestic market share and exports to over 150 countries. The study is framed by India’s TREM IV and proposed TREM V emission norms, along with the EU’s Carbon Border Adjustment Mechanism (CBAM). Using secondary sources, one dealer interview, and a pilot questionnaire, the study finds that ITL has strengths such as vertical integration, low-VOC robotic paint systems, export-oriented assembly, and partial rail connectivity. Key challenges remain in Scope 3 emissions tracking, reverse logistics, and infrastructure for electric and CNG/CBG tractors. The study recommends better digital emissions monitoring, stronger rail and intermodal transport, circular economy initiatives, alternative fuel adoption, and supplier development.