The origins of thernChinese car industry can be dated back to 1978, when the only two carrnmanufacturers were First Automotive Works and Shanghai Automobile AssemblyrnPlant (today: Dongfeng Motor Corporation). This changed after the Chineserngovernment implemented new economic reformations in 1978. Especially thernautomobile industry benefited from these new regulations and a lot of chancesrnand opportunities arose. The Chinese government simplified the market entrancernduring the first years. As a result, a lot of new car manufacturers includingrnChery, Geely and Brilliance Auto were established. In a second step, therngovernment established an aid scheme for the automotive industry to supportrninnovation and to increase the product quality of Chinese cars. It also allowedrnjoint ventures with foreign car manufacturers, which was another important steprntowards growth and internationalization. Thus, China is the leading carrnmanufacturer in the world nowadays. It is expected that the Chinese automotivernmarket will continue to grow in the next ten years, becoming as big as the onesrnof Europe and the US together. Apart from the high demand and continuousrngrowth, there is also a high potential for electric cars, as the Chineserngovernment plans to reduce its CO2 emissions until 2020 about seventeenrnpercent. This paper focuses the growth and development of the Chinas automobilernindustry.