In 2009, the automobile industry of China has got fruitful results. The output of the auto reached 13.79 million, the sales of the auto reached 13.64 million in our country, both of them ranking first in the world. The big automobile market capability, which was only inferior to American, made our country be the second automobile consumed country. The output value of the automotive industry accounted for 8% in GDP, which be the second contribution to our GDP, has become the pillar industry and strategic industry of China. It plays an important role and far-reaching impact in economic, technological and social development in our Country. However the competition of automobile industry in our country is still lower than other countries. Particularly being affected by the global financial crisis, corporate giants intensified wave of merger and reorganization, the world automobile industry transferred to developing countries, that made the automobile industry facing new challenges and opportunities in China. In this context, how to meet challenges, seize the opportunity, enhance independent innovation capability of auto companies and industry structure have very important practical significance for narrowing the gap between advanced countries and realizing the dream of being great power country.The research is based on the related concepts about the Industrial competitiveness by combining with the characteristics of the automobile industry to extract of the main factors affecting competitiveness that making the foundation for the actual analysis of the automotive industry. Discussing the necessity of enhance the competitiveness of automobile industry in the view of the global trends. By summarizing of the automobile industry status and using SWOT method to point out the problems and the future development of auto industry in the view of the strengths, weaknesses, threats and opportunities factors. Using factor analysis establish of the automobile industry competitiveness evaluation system to analyze the main factors that affect the competitiveness of auto industry of China. Combining of the qualitative analysis and quantitative analysis, theory and empirical, analyze the problems that existent in the auto industry, for example low-tech, low industrial concentration, lack of independent innovation, and less investment issues. On this basis, proposing solutions in the view of macro, meso and micro to promote the automobile industry of China developing healthy and steady, in order to enhance the international competitiveness of the auto industry.