Abstract: The performance of any organisation is generally based on the competency possessed by the employees working i.e. the existing human resources. This expertise never come in a day or two, it always takes time to be developed. The experience gained over the period is regarded as knowledge, so in any firm Knowledge is regarded as valuable intellectual asset. Dennis J. King, US department of State says that the Knowledge Management is the systematic process and strategy for finding, capturing, organizing, distilling and presenting data, information and knowledge in a domain specific. Knowledge management is essentially about getting the right knowledge to the right person at the right time. It involves a strong link to business strategy, understanding of where and in what forms the knowledge exists within the organisation and its processes, and ensuring that initiatives are accepted and supported by various members of the organisations. Knowledge management may also include new knowledge creation, or it may solely focus on knowledge sharing, storage, and refinement. It is always important to remember that knowledge management is not about managing knowledge and storing it, it is about sharing and using it. The Automobile industry is operating in a dynamic and competitive environment, hence, it is essential to learn by everyone from all the stakeholders. This study is to find out the knowledge sharing practices being followed in various Automobile outlets located at Bhikaji Cama Place at New Delhi. The present study is an attempt to find out whether there is any relationship between knowledge management practices and performance enhancement in the service industry. The investigator has selected male and female employees in various outlets as part of this study. A completely validated research Tool has been administrated on the sample to study the relationship between Knowledge Management practices and Performance enhancement. The methodology followed for the investigation is survey method. Descriptive as well as inferential statistical techniques have been used to interpret data.