Nanocomposites are relatively new material made with various polymers and nano-size inorganic or organic fillers. Nanocomposites have a number of advantages over conventional polymer composites, such as excellent mechanical properties, better durability, high smoothness, thermal stability and higher heat distortion temperature. The aim of this review focused on polymer-clay nanocomposites, carbon-nanotube/polymer composites, rubber nanocomposites and bionano-composites, including their manufacturing, processing, and characterization. The review also discussed the advantages, disadvantages of the nanocomposites and their current or potential applications in automotive industry.