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Since the end of W.W.II, many countries have embarked on various to develop a national automobile industry to spur the economic growth of the country, to meet the rising domestic demand for automobiles, and to compete in the world markets. Can these countries achieve these objectives and at the same time retain their national independence in the automobile industry from the domination of the foreign multinational automobile manufacturers? This paper addresses these questions by examining first, the records of Latin America (Argentina, Brazil, Mexico), South Korea and Taiwan in Asia Pacific Region; it then attempts to determine to what extent their experiences may be transferrable to the Chinese automobile industry which is currently undergoing modernization. For the purpose of this paper, the automobile industry encompasses only passenger vehicles.