The objective of this study is to review and evaluate the applications of magnesium in the automotive industry that can significantly contribute to greater fuel economy and environmental conservation. In the study, the current advantages, limitations, technological barriers and future prospects of Mg alloys in the automotive industry are given. The usage of magnesium in automotive applications is also assessed for the impact on environmental conservation. Recent developments in coating and alloying of Mg improved the creep and corrosion resistance properties of magnesium alloys for elevated temperature and corrosive environments. The results of the study conclude that reasonable prices and improved properties of Mg and its alloys will lead to massive use of magnesium. Compared to using alternative materials, using Mg alloys results in a 22% to 70% weight reduction. Lastly, the use of magnesium in automotive components is increasing as knowledge of forming processes of Mg alloys increases.