| Automobile industry has been developed rapidly after the implementation of reform and open policy especially after joining into WTO. In recent years, the cluster phenomenon also draws many scholars'attention and they have found out that there is correlation between FDI and auto-industry cluster after massive study. Based on this, the paper studies on the correlation and comes to a conclusion on how to develop our country's auto-industry cluster.First, on the basis of the theories of FDI and cluster, the paper studies on the correlation between FDI and auto-industry cluster. Three aspects are taken as the main indexes for the development of auto-industry cluster: Concentration Ratio, the development level of technology and the scale economy. Second, it analyzes the correlation between FDI and Concentration Ratio and FDI and TFP by virtue of SPSS software. At last, based on theory study and evaluation and according to our country's auto-industrial characters, the paper puts forward the suggestions about the development of our county's auto-industry cluster in the view of FDI: improving the investment environment,in order to attract FDI and improve the level of using FDI; encouraging to enlarge the industrial scale in order to improve the rationalization of organization in auto-industry cluster; promoting the self-innovation and self-development of auto-industry cluster, which is the foundation of long-range development for the auto-industry. In conclusion, auto-industry's development needs a perfect supplementary system.
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