Guided by national policies and driven by market demand, China’s automotive manufacturing sector has achieved remarkable progress, particularly in new energy vehicles and intelligent connected vehicle technologies. With breakthroughs in Level 3/4 autonomous driving technologies and the strengthening trend toward multi-center industrial clustering, China’s automobile production and sales exceeded 30 millison units in 2023, maintaining its position as the world’s largest market for the 15th consecutive year. The market penetration rate of new energy vehicles surpassed 50%, signifying market maturity and deep technological integration. Domestic brands like BYD and L2 have demonstrated formidable competitiveness globally through technological innovation and international market expansion. However, the industry still faces severe challenges, including chip shortages, supply chain instability, overcapacity, and international economic uncertainties, which exert significant pressure on sustainable corporate development. This paper reveals the competitive strengths and weaknesses of Chinese automotive manufacturers in the global market by thoroughly analyzing their technological development, market performance, policy support, and industry structure. The article further proposes strategies to strengthen independent R&D, optimize supply chain management, rationally plan production capacity layouts, and enhance technological capabilities and global market share through international cooperation. Research findings indicate that future technological innovation and globalization strategies will be key to maintaining sustainable competitive advantages for China’s automotive manufacturing sector.