The effective competition is an effective organizational form of the industry in modem market economy. It is a form accompanied with large - scale production and vigor competition. The analysis of effective competition has been the focus that people have paid close attention to it very much all the time. It is a basis of industrial policy, on the basis of the former research, the aufhors bring out 9 indexes according to the actual situation of our country, then take automobile trade as an example, we analyze the automobile trade with principal component.