This paper summarizes the current situation and development trends of the automobile industry in China, and then proposes the connotation of transformation and upgrading of the automobile industry in China from the aspects of new material, new structure, new technique, new equipment, new energy, new function, and new mode. It also analyzes and compares four new paths for the current transformation and upgrading practices, including independent technological innovation, cross-sector cooperative development, policy resource support, and business mode innovation. Finally, corresponding development proposals are put forward.