The auto industry in China is transferring from consumption to manufacture and has established development and innovation capability. The percentage of auto industry in GDP always ascends and it has been the leading actor in China. As core assembly in vehicle, the power train should keep balance between the pressure of environmental protection and energy conservation and international competition and diversified essential competition element. In the new competition phase, competition has changed from pursuing performance to comprehensive competition of environmental protection, energy conservation and cycle economy. In this paper, each challenge and core technology of power train are analyzed in depth and finally the road map and key concepts to meet the requirement of environmental protection and energy conservation are put forward. The FAW's product tactics are recommended.