The multilateral trade relations between Malaysia and MERCOSUR is a new market. This study focuses on automotive policy areas towards the MERCOSUR regime which focus on trade ties. The purpose of this study is to expand national automotive policy to penetrate the automotive sector in the MERCOSUR. While it create opportunities to penetrate the automotive sector in MERCOSUR where Malaysia needs to enhancement national trade performance of FTA potential within MERCOSUR regime especially on investment and trade. The main issue is the lack of progress and process are restrictions on Malaysia's within MERCOSUR in the automotive field. Malaysia does not pursue trade within respective nation but in statistical shows have a large and positive market economy with the southern continent of America, especially the automotive industry and lack of performance of Malaysian counterparts and MERCOSUR and unsuccessful automotive investment and exporters. This research uses qualitative research methods, data collection, interviews, and content analysis methods for this study. Expert from respective agencies as interviewees such as the Ministry of Foreign Affairs (MOFA), Malaysia Trade Relations Division (MATRADE), the Department of Robotics and the automotive trade policy of Malaysia and the IoT Institute. Coding techniques are used for coding processes in content analysis. Hereby, the analysis by using the Economic Integration theory with SWOT Analysis to find out the implementation of Malaysia FTA within the MERCOSUR .Hence, research findings show that Malaysia's multilateral within MERCOSUR relations have a potential to be strengthened with a variety of positive and initiatives from the Malaysia government.