Natural fibers have recently caught the attention of academic and industry researchers due to their ease of availability, environmental friendliness, and biodegradability. Natural fibers derived from plants, such as jute, sisal, banana, flax, hemp, coir, kenaf, and many more, have been extensively researched over the last two decades and are gaining prominence over synthetic fibers. Natural fiber composite materials exhibit excellent strength and stiffness, high fracture resistance, as well as superior thermal and acoustic insulation qualities. Natural fiber reinforced composites have the potential to minimize component cost and material waste in automotive applications. The rising need for lighter, safer, and more fuel-efficient automobiles has led to the increased use of natural fiber composite materials in automotive applications by European automakers over the last decade. This paper investigates recent advancements in the usage of natural fiber-based composite materials in the automobile sector.