Abstract: New energy vehicle is not only an important way to relieve the energy crisis and reduce environmental pollution, but also the breaking stop the revitalization ofChina’s Automobile industry. Currently Hybrid vehicle is the focus ofChina’s development of new energy vehicle, due to its relatively mature technology, low cost and high market acceptance.But it should be pointed out that, some problems exists inChina’s Hybrid Vehicle Market, such as low concentration, loose connection between the component production and whole line production, and the difficult situation about coexistence of vertical integration and vertical split development.This paper firstly makes analysis on the difficulties of Hybrid Vehicle Development in China; then generalized developing experience of hybird vehicle in Foreign Countries, finally propose a reasonable approach to develop China's Hybrid Vehicle Industry.