This paper defines the concept of innovation and innovation management on the example of the automotive industry. The speed of development of technologies and innovations throughout history and their impact on the market and society are presented. Key events in history that have played a critical role in shaping business in the automotive industry are highlighted. The current state of the automotive industry in North America, Europe and Asia was also analyzed. Key modern trends, which affect the process of creating innovations and their application, are presented, as well as the main market requirements and adaptation to modern times that will pose great challenges for car manufacturers and how these requirements affect potential future innovations and technology development. Finally, an analysis was performed that shows the concept of autonomous driving and electric cars, and special attention was paid to innovations that continuously over time enabled continuous development of cars, optimized development processes, enabled global expansion, reduced production costs, but also increased safety and turned to new existing trends that are happening at an exponential rate in the automotive market. The last chapter analyzes the future opportunities and challenges of autonomous driving and situations that the automotive industry and all its participants, as well as society, will have to face and be willing to accept and establish the sustainability of the industry or change the way of doing business.