Since that Mainland China joined the WTO at November 2001, the importing quota constrains of automobile and related components have gradually been relaxed these years. In addition, the tariff will be reduced to 30% in 2005. Such a change causes a whole new competitive environment on the automobile market which China has to face with. In this article, we first survey the current development of China's automobile industry. Next, we discuss the demand for logistics service in the developing process of this industry. Then, a comparison among several business types of the automobile logistics is analyzed. Finally, this paper proposes conclusions on the challenges and trends of this industry.