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Smartness and agility are two quality measures that are pragmatic to achieve a flexible, maintainable, and adaptable system in any business. The automotive industry also requires an enhanced performance matrix and refinement in the development strategies for manufacturing. The current development models used in automotive manufacturing are not optimal enough; thus, the overall expenditure is not properly managed. Therefore, it is essential to come up with flexible, agile techniques incorporating traceability methods. It overcomes the traditional manufacturing approaches that are usually inflexible, costly, and lack timely customer feedback. The article focuses on significant Requirements Management (RM) activities, including traceability mechanism, smart manufacturing process, and performance evaluation of the proposed methods in the automotive domain. We propose a manufacturing framework that follows smart agile principles along with proper traceability management. Our proposed approach overcomes the complexities generated by traditional manufacturing processes in automotive industries. It gives an insight into the future manufacturing processes in the automotive industries.