Automobile industry is a pillar industry having direct implications on the national economy and the people' s livelihood . To be a wealthy and civilized modem country, China has to build a powerful and proprietary auto industry. Facing the realities that China's auto industry is poor in proprietary products and brands, the paper analyzes the respective roles of government, industries and consumers in developing a proprietary auto industry, and puts forward suggestions concerning establishing a proprietary auto industry in the country.