Thermoelectric generator (TEG) is a promising thermoelectric (TE) conversion technology to effectively recover and convert waste heat from vehicle exhaust into useful energy, ie, electricity. Exhaust TEG (ETEG) is a system that is incorporated into the exhaust manifold of a vehicle. Exhaust TEG comprises of a heat exchanger, TEG modules, heat sink, and power conditioning unit. The present work reviews different vehicular ETEGs based on engine type, engine-rated power, type and number of TEG module, efficiency of ETEG and TEG, exhaust and coolant temperature, and power output of ETEG. In addition to these, the technical issues faced in these ETEGs are addressed under 2 categories, viz., primary (TEG with low ZT TE material and inefficient heat exchanger and heat sink) and secondary issues (low operating temperature TEG modules and installation position of ETEG). In addition to it, effects of vibration and thermal cycling of exhaust system on TEG modules that may arise in ETEG are also discussed. A review of preventive solutions to the issues is also presented. Finally, the economic aspects of an ETEG are also discussed. The review highlights the need of commercialization of TE materials with ZT>2, high-temperature operating range, and segmented TEG modules in large volumes so that their practice can be extended in vehicular applications. Heat exchanger modeling using computational fluid dynamics and interfacing with heat transfer theory is essential to maintain temperature uniformity across the TEG modules. Installation of ETEG in the exhaust pipe should be such that it does not affect the performance of the engine. It is also realized that sturdy TEG modules should be developed for long-term operation to prevent degradation due to mechanical vibration and thermal cycling of the vehicle. Further, ETEG is economically beneficial in vehicles such as trucks owing to availability of high thermal energy in their exhaust stream.