Yes, 自動 is a common prefix in Japanese that means automatic. So, in your example, the first two kanji mean automatic and the last kanji means car.

自動車 (jidousha): Automobile

Other examples include:

自動販売機 (jidouhanbaiki): Vending machine

自動ドア (jidoudoa): Automatic door

自動エリクサー (jidouerikusa-): Automatic Elixir (joking)