Abstract: As the pillar industry, the auto industry has promoted social and economic development with its innovated technology supported by government policies. The paper focuses on the technological innovation policy, utilizes the factor analysis method, entropy weight method and gray comprehensive evaluation method to study empirically the policy's effects on China's auto industry, not only based on the researches of scholars at home and abroad, but from different aspects, such as overall effects, economic benefits, technology input and output. The research finds that the auto industry has been basically innovated and developed under the support of national policies, proving to be effective as a whole. Though the economic benefits are subject to rising with fluctuations and the uplift of the technology input tends to be wave-shaped, the output continues to increase. However, several policy effects are still poor and the industrial progress relies mainly on financial funds. So the adjustment must be timely carried out for the support policy to establish an innovation system of the industrial technology which is applicable for the new period’s progress.

Key words: auto industry, technological innovation policies, grey comprehensive evaluation, factor analysis, entropy method