The concept of greening is closely linked to the green economy and is becoming a political and socio- economic imperative of today's world. The two key factors related to the global economy are; resources are limited, and the demands and desires of the population are unlimited. In the last few decades, world organizations such as the United Nations and its member states have placed emphasis on climate change, all with the aim of reducing the causes of these changes in order to preserve the environment, and thus society and the economy for future generations. The automotive industry is one of the most technologically advanced industries, but as such it poses a major threat to the environment. A typical passenger car emits about 4.6 metric tons of CO2 per year. In addition to carbon dioxide, cars also produce methane (CH4) and nitric oxide (N2O) from the air conditioning exhaust pipe. The impact of these emissions is important because of the global warming potential (GWP). Because of needed adaptation and new solutions for safe and environmentally friendly driving, the automotive world is changing faster, therefore automotive organizations need to act quickly and flexibly. Greening the automotive industry is a challenge for old and new manufacturers who are under enormous pressure from society, governments, regulators and investors. In order to achieve green business for automobile companies, it is necessary to overcome the two most important challenges; ensure that the new generation of “green cars”, which are mostly smart electric cars, is fully sustainable without negative environmental impact, and to incorporate circular economy model into the entire value chain. In addition to these two main challenges, barriers to greening the automotive industry are best divided into categories of environmental, economic and socio-technological obstacles, in order to clearly differentiate and explain the value of each barrier.