Cost reduction gains a great intention among manufacture companies nowadays. Therefore, the phrase "cost reduction" refers to actual or true savings in production, administration, selling, and sharing expenses as a result of the removal of unnecessary and inefficient parts from product design as well as from the methods and procedures used in conjunction with it. Accordingly, the current study aims to investigate the effect of supply chain performance on cost reduction in automotive industry through adopting Nissan Motors Egypt as a case study. Both qualitative and quantitative data are collected. The results of the qualitative analysis shows that supply chain, inbound logistics cost, inventory management and competitiveness are the four main themes that affect the cost reduction of the company, where each theme consists of number of codes. Moreover, the quantitative analysis shows there is a significant difference in cost reduction between the year-round, first quarter, second quarter, third quarter, and fourth quarter.