Due to rapid growth in urban population and advances in the automotive industry, the number of vehicles is increasing exponentially, posing the parking challenges. Automated parking systems provide efficient and optimal parking solution so that the drivers can have hassle free and quick parking. One of the demanding requirements is the design of smart parking systems, not only for comfort but also of economic interest. With the advancements in the Internet of Things (IoT), wireless sensors-based parking systems are the promising solutions for the deployment. Optimal positioning of IoT enabled wireless sensor nodes in the parking area is a crucial factor for the efficient parking model with the lower cost. In this paper, we propose a novel multi-objective grey wolf optimization technique for node localization with an objective to minimize a localization error. Two objective functions are considered for distance and geometric topology constraints. The proposed algorithm is compared with other node localization algorithms. Our algorithm outperforms the existing algorithms. The result shows that localization error is reduced up to 17% in comparison with the other algorithms. The proposed algorithm is computationally efficient due to the choice of fast converging parameters.