With the rapid development of the automobile industry, on the one hand, it has promoted the development of the national economy and facilitated people’s travel. On the other hand, it has caused environmental pollution, energy shortage, frequent traffic accidents and other hazards. Therefore, in order to create a society in which cars, people and the environment develop harmoniously, it is necessary to promote the transformation and upgrading of the automobile industry. Firstly, this paper analyzes the impact mechanism of tax policy on automobile production, consumption structure and technological innovation of automobile affiliated enterprises. Then, it combs the existing tax policy, and analyzes the effects and defects of policy on the transformation and upgrading of automobile industry. Finally, in view of the shortcomings in the transformation and upgrading of the automobile industry, some suggestions for improving the status quo of taxation policies are proposed.
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