The 21st century brought new concerns and pressures to the way companies innovate.If in the past innovation was predominantly driven by the intention of exceeding customers' expectation or to create simpler and less costly processes; today many organisations are required to respond to environmental and social demands.With regard to the environment, the major environmental concerns in the 21st century are: atmospheric pollution, scarcity of freshwater, raw material and land availability. All these environmental impacts have a great impact on how companies manage their business, and therefore, they are also a driver to innovation. Automobile is that sector due to which the pollution control rate is more than other any other sector. It is the need of the generation and for that many innovations have been done and many aregoing on. This paper talks about the technologies which will change the future of the automobile industry.