The manufacturing organizations are adopting the environmentally friendlier practices to sustain in the competitive business environment. Automotive industries are adopting the environmental management standards to comply with government norms. Life Cycle Assessment (LCA) enables the evaluation of environmental impacts associated with the processes. Life Cycle Costing (LCC) enables the attainment of economic aspect of sustainability. This article presents an integrated approach of LCA-Activity Based LCC to minimize the environmental impact across the life cycle as well as to identify the costs associated with life cycle activities. Different scenarios are being analyzed from the sustainability view point, and critical activities are also being identified so as to improve sustainability. © 2015 Sharif University of Technology. All rights reserved.