The paper investigates the process of development and implementation of diversity and inclusion practices as a part firm strategy. The study covers sample of small and middle-sized automotive firms, where diversity and inclusion practices have been implemented in relation to the firm sustainability. The paper methodology is based on theoretical models of diversity management and firm sustainability in the automotive sector. Paper’s results demonstrate that low number of firms in the Czech Republic in the automotive sector have been rolling out any diversity and inclusion measures but at the same time majority of the selected firms have been considering development and implementation of human resource management practices in the area of diversity and inclusion as vital part of attracting more investors and aligning with the global sustainable goals of United Nations. Moreover, the paper brings evidence that the firms are following the global and regional trends on diversity and inclusion in the automotive sector in the Czech Republic as an important step for sustainable strategic development.