The Chinese automobile industry is considered as infant industry when it compared with international standard. This industry grew very fast in the last decade and entrance in WTO (World Trade Organisation) becomes its turning point. The Chinese government provided various measures including financial assistance and drawn favourable policies for the automobile industry considering its strategic importance in economic development. Although Chinese automobile companies lacks in different aspects and domestic firms just copying the international brands, never made their own. The objective of this paper is to analyse the process of transformation of Chinese automobile industry and the key factors behind it. This study will demonstrate the global strategy of Chinese automotive industry in the process of internationalisation and the current status of the auto industry.