Powder Metallurgy (PM) is a cutting-edge technique used for the manufacturing of spare parts with unique mechanical properties out of metal, alloys, and composite powders. Nowadays, PM manufactures more than 70% of the industrial spare parts. Due to its high productivity, ability to make more sophisticated shapes, and cost-benefit analysis. Production of items in net shape or nearly net shapes is possible. Iron, copper and aluminum are the primary constituents for the automotive spare parts. According to the European Aluminum Association (EAA), manufacturing of automotive spare parts from Aluminum has many advantages e.g., the reduction of the vehicle's weight, which saves 0.6 liters of fuel per 100 km for every 100 kg. Using aluminum instead of steel in the production of automotive spare parts saving 300 kg weight with a weight of 1400 kg. This is more valid as it helps in the reduction of the fuel consumption. Further decreases air pollution by about 20%. Cast iron was utilized in the manufacturing of brake systems in automobiles, but nowadays more efforts are done for replacing the heavy iron by more lighter materials. So, by using PM, aluminum matrix composite (Al-MC) was utilized for the manufacturing of brake discs, brake drums and other brake equipment with low density and superior mechanical properties. The purpose of this state of art is to provide an over view of powder metallurgy techniques and their importance in the manufacturing and development of automotive spare parts in automotive sector from last century to the present.