Making sheet metal components for automobiles using tailor-welded blanks (TWBs) has a number of advantages over conventional blanks, including greater product design flexibility, increased structural rigidity, and improved crash behavior. It is possible to get particular qualities needed in appropriate places of the produced parts by using TWBs. The use of TWBs also lowers production costs, quantity of forming processes required, and weight of the vehicle (making them environmentally friendly), and it does away with post-forming welding. It is also essential to analyze the post-forming characteristics of sheet metal parts, such as micro-hardness and residual stresses, after producing sheet metal components utilizing plain sheets and tailor-welded blank (TWB). Particularly in automotive applications, residual stresses are crucial in deciding the lifetime of automotive parts. Resultant internal stresses that emerge as a result of retained elastic energy after the elimination of deformable loads or temperature variations are known as residual stresses in a part. When the component is exposed to static or dynamic loads, the tensile residual stresses are harmful and might cause an early failure. Conversely, compressive residual stresses are advantageous for parts exposed to alternating stresses. As a result, engineers devised strategies for introducing compressive residual stresses into mechanical parts. The present study reviews forming aspects of TWBs and residual stress characterization in the welded blanks (prior to forming) and formed parts. Also, the potential methods for reducing the residual stresses in the automotive components have been outlined.