The paper analyses the development of Chinese automobile industry from three aspects,which are capacity,export and productivity.The two stages in the development of Chinese automobile industry and the features in each stage are also discussed.Then the paper proposes a basic standpoint,which is the policy of developing Chinese automobile industry by joint venture not only enlarge the scale of automobile industry,but also accelerate its technical advancement.Finally,on the basis of reviewing the structural transformation of automobile industry in the world and discussing the foreground of Chinese automobile industry,four proposals on advancing Chinese automobile industry are put forward.