This review paper provides a comprehensive overview of engineering design applications in the automotive sector, highlighting the evolution of design through advanced technologies like AI and optimization. It identifies key challenges, including system complexity, technology integration, sustainability, and knowledge management in multidisciplinary teams. Practical insights emphasize the need for investment in design tools, interdisciplinary collaboration, sustainability in design, and human-centered approaches. Additionally, it stresses the importance of virtual collaboration tools. This paper is valuable for academics and industry professionals, offering insights into trends, challenges, and gaps in engineering design.