This paper discusses the nanofluid integration in the contemporary automotive industry including its effect on engine cooling and lubrication, and fuel efficiency. As there are increasing demands of energy efficient and environmentally friendly cars, nanofluids have gained much attention due to their superior thermal conductivity, heat transfer efficiency, and tribological properties. To evaluate the performance of nanofluid in the automotive systems, the study used a thorough review methodology where it examined both experimental and computational results of the literature available in the study. The findings showed that the addition of CuO and ZnO nanoparticles in fuel and Al2O3 and ZnO in lubricants increased thermal efficiency by 17.62% and decreased specific fuel consumption by 14.98%. Emissions of carbon monoxide (CO) and nitrogen oxide (NOx) went down by 20.04% and 10.25% respectively, and CO2 emissions rose by 29.16%, which is indicative of a more complete combustion. Moreover, the lubricants made of nanofluids demonstrated a 0.484% enhancement in viscosity stability and hence are able to perform better under different conditions. Although it has these benefits, other issues like nanoparticles agglomeration, high production, and compatibility issues with the existing automotive parts continue to hinder its wide usage. The originality of this work is the comprehensive evaluation of nanofluids in various subsystems of automobiles as compared to earlier studies which have mainly targeted individual subsystems like the heat transfer. This study will offer a systematic approach to the optimization of nanofluids formulations to maximize efficiency, minimize emissions, and make the automotive industry sustainable by assessing the progress, limitations, and future research directions. The future work needs to be directed toward the enhancement of nanofluid stability, economical manufacturing approaches, and the lifecycle analysis to implement it on large scales. These results make nanofluids an innovative technology in the next-generation automotive engineering.