Rapid technical advancement, changing consumer demands, and heightened international rivalry are all driving a significant transition in the automotive industry. In order to create strategies that guarantee long-term sustainability and profitability, producers, marketers, and legislators must have a thorough understanding of consumer preferences and purchasing behavior. This thorough analysis looks at the body of research on consumer decision-making trends, the reasons behind purchases, and the psychological, social, and economic aspects that affect car choices. It examines how social media, internet research, and digitization are increasingly influencing consumer choices, as well as the trend toward sustainable and ecologically friendly mobility options. Emerging trends like the use of electric vehicles, the impact of sustainable mobility, and the growing need for connected and autonomous vehicles are given particular focus. Furthermore, the review identifies the key challenges faced by the industry, including changing customer expectations, regulatory pressures, and technological advancements. By synthesizing current insights and highlighting research gaps, this study offers useful recommendations for future research and practical consequences for stakeholders looking to align with changing consumer behaviour in the contemporary automobile ecosystem.