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The Indian automobile industry is one of the largest industry in the world. The Government of India and the major automobile players are working together to make India a leader in the two wheeler and four wheeler market in the world by 2020. Technological advancements have been reshaping the manufacturing industry. Internet of Things (IoT) is one of the new technologies based on connecting things to make communication among various devices via the sensors, actuators, internet etc. This technology has tremendous scope in future for changing world and the way we live. This is a review paper based on studying architecture, components, scope of internet of things (IoT) in the automobile industry and focusing on the car vehicle. Further study helps to identify the advantages, disadvantages and impact of this technology on automobile industry. By 2020it is predicted that, new cars will be manufactured which is fully loaded with new technology.