The current generation of automobiles is known for its sophisticated safety, comfort, and performance characteristics, which were developed in order to meet the ever-growing competition and advancement in the automotive field. Consequently, the development of smart materials with unique and exceptional properties is also gaining momentum. Of the various smart material currently applied in automotive technology, Shape Memory Alloys (SMAs), which boast the unique properties of shape memory effect and pseudo-elasticity, are steadily gaining popularity. The most prevalent automotive application of this material is in SMA actuators. These actuators are compact, lightweight alternatives to mechanical actuators, providing silent operation, enhanced reliability, durability, and resistance to humidity, shock, and vibrations. They are used in a variety of automotive systems such as adjustable mirrors, windshield wipers, door locks, smart bonnets, tumble flaps, governor valves, fog louvers, hatch vents, and many more. Among the various commercially available SMAs, Ni-Ti alloys are the most extensively used in most of these applications. This paper provides an overview of the properties, applications, and challenges of SMAs in the automotive sector.