This paper analyzes the innovation system in the automobile industry on the basis of the basic definition of the automobile industry innovation system. The paper points out that non-profit research institutions dedicated to application technology, focusing on technology maturity from grade 4 to grade 7 and responsible for closing the gap between basic research and industrial technology, are falling short. The paper takes into account the international standards and experiences, and studies the structure of the innovation system in the automobile industry of China. It recommends setting up a Chinese automotive innovation council and speeding up the construction of an automobile industry-related innovation center.