AbstractDue to increased customer knowledge of the environmental effects of conventional automobiles and their concerns, the automotive industry is undergoing a substantial change toward sustainability and environmentally friendly goods. The goal of this study is to examine the relationship between customer purchasing behaviour and new product development, with an emphasis on environmentally friendly automotive products. It aims to establish industry best practices and comprehend how customer purchasing habits are incorporated into the creation of sustainable products.This study fills a current research gap on the precise variables influencing sustainable product development processes in the automobile sector. It looks into the function of customer feedback and the influence of environmentally friendly product design on consumer behavior. We can learn a lot about the connection between consumer behavior and sustainable product innovation by looking at data from a variety of angles, such as the impact of the sustainability movement on product development, customer-focused innovation strategies, and customer feedback.The findings highlight the significance of adjusting to changing consumer tastes by providing a wide variety of eco-friendly features and solutions to satisfy customers. Additionally, factors including cost of ownership, price sensitivity, and brand loyalty influence customer purchase patterns. Government rules and environmental concerns, particularly those relating to electric vehicles, also have a substantial impact on consumer purchasing behavior and propel the industry's development of sustainable products.The research emphasizes the value of sustainability in the creation of new products, highlighting the use of eco-friendly materials, taking recycling and end-of-life disposal into account, and investigating alternative fuel vehicles. It emphasizes the significance of gathering consumer input via surveys, focus groups, and online evaluations in order to effectively incorporate sustainability principles into the product development process.The study concludes that it will be difficult to meet the rising demand for environmentally friendly transportation solutions without successfully incorporating sustainability and customer preferences into product development processes. It highlights how Product as a Service (PaaS) has the ability to speed up innovation and the creation of sustainable solutions by easing collaboration, data analysis, and the integration of new technologies.Keywords: New product development, Automotive Industry, Sustainability, Customer Purchasing Behaviour