Yes, you can watch Netflix on Android Auto. You can either use the Netflix app or a browser to watch Netflix while using Android Auto.
If you want to use the Netflix app, you'll need to have a phone that's running Android 5.0 (Lollipop) or higher and the latest version of the Netflix app installed. You'll also need a car that supports Android Auto; check with your manufacturer to see if your car is compatible. Once you have everything set up, launch Android Auto on your car's display and then select the Apps icon in the bottom left corner of the screen. From there, select the Netflix icon and sign in with your account information. Now you're all set to start streaming!
If you'd prefer to use a browser, any recent version of Chrome should work just fine. Open Chrome and navigate to netflix.com; once you're signed in, you can start watching movies and TV shows right away. Be aware that streaming video will eat through your data pretty quickly, so it's best to do this when you're connected to Wi-Fi.