In this thesis, an economic analysis of China’s automotive industry is performed. The analysis focuses on the basic introduction of development roadmap, the economic relevance of automotive industry and its geographical characteristics, the cooperation and competition of indigenous corporate with foreign invested joint-ventures, and the future development scenario, particularly the new-energy vehicle subsector of the automotive industry. The economic data of industrial output, value-added generated by the automotive industry, GDP, employments supported etc. are used to evaluate the economic contribution of automotive industry to local and national economy. The cooperation and competition between indigenous corporates and joint-ventures are elaborated based on their performance indicators and market share.