Being an important and money-spinning industry for many decades, automotive industry is now facing with several challenges supplemented by global fierce competition. In these circumstances, reducing cost and increasing production development and delivery speed have been identified as practical strategies for survival and growth. Whereas, e-business in general and e- procurement specifically has shown innovative methods and new horizons for implementing those strategies, some developing countries are less prepared for the adoption. Thanks to protectionism, Iranian automotive industry is still enjoying a rather closed market, though sooner or later the latent global challenges will be felt by the market players. In this respect, this thesis is aimed to find out how e-procurement is being used in Iranian automotive supply chain and what benefits and barriers are associated with its implementation. To this end a qualitative approach was used and multiple case studies were conducted. Our finding shows that Iranian automotive supply chain can gain a lot through implementing an integrated and standard e-procurement solution. While, some chronic impediments like technology infrastructure, culture and legal system have to be changed considerably before any pragmatic endeavor.