This review paper aims to provide a comprehensive overview of engineering design applications, with a particular focus on the automotive sector, and to analyze the challenges associated with implementing them. Design/methodology/approach: The paper conducts an extensive literature review, synthesizing findings from numerous studies across various engineering design applications. Findings: The review reveals that engineering design has significantly evolved, integrating advanced technologies like AI and optimization techniques. In the automotive sector, applications range from knowledge-based engineering for rapid design to model-based systems engineering for complex system integration. Key challenges identified include managing increasing system complexity, integrating new technologies, balancing sustainability with performance, and effective knowledge management in multidisciplinary teams. Practical implications: The findings underscore the need for continued investment in design technologies, greater interdisciplinary collaboration, integration of sustainability principles into core design practices, and enhanced focus on human-centred design approaches in the automotive industry. The paper also highlights the importance of developing more robust virtual collaboration tools and practices. Originality/value: By identifying key trends, challenges, and research gaps, this paper offers valuable insights for both academics and practitioners in the field of engineering design.