Small and medium-sized businesses (SMEs) may boost their efficiency, creativity, and competitiveness with the help of Knowledge Management (KM), a new strategic approach. This research looks at how small and medium-sized automobile companies in India are using KM techniques and how it relates to their sales numbers. Stratified random sample and a structured questionnaire were used to gather primary data from 250 SMEs in Pune that produce automotive components. A descriptive study approach was then used. Descriptive statistics, analysis of variance, & Spearman's rank correlation were used for data analysis. The findings indicate that most SMEs have adopted moderate to good KM practices, although investment in information technology infrastructure remains limited. While organizations reported satisfactory levels of knowledge sharing, management support, and customer satisfaction, no statistically significant relationship was observed between KM practices and sales performance. The study concludes that Knowledge Management contributes to organizational learning and operational effectiveness but may not directly influence short-term sales. Strengthening technological capabilities and fostering a knowledge-sharing culture are recommended for sustainable competitiveness.