The　manufacturing　capacity　of　passenger　cars　represents　one　country＇s　overall　manufacturing　ability.　Recently,　passenger　cars　manufacturing　industries　(PCMI)　of　China　were　faced　with　some　challenges　including　rising　production　costs,　declining　productivity,　and　unreasonable　cost　structure.　In　this　article　we　analyzed　the　cost　structure　of　12　Chinese　listed　passenger　cars　manufacturers　and　compared　them　with　those　of　Ford　Motor,　Toyota　Motor,　and　Volkswagen　Motor,　the　most　representative　passenger　cars　manufacturers　from　the　United　States,　Japan　and　Germany.　The　results　indicated　that　there　existed　much　potential　for　reducing　the　materials　costs,　taxes　costs,　and　financing　costs　in　the　cost　structure　of　China＇s　PCMI.　At　the　same　time　the　investments　in　research　and　development　should　be　enhanced　further,　which　would　be　generally　low　at　present.　And　we　found　that　the　rising　labor　costs　were　not　the　main　reason　in　profit　decline　of　China＇s　PCMI.