Abstract: Using the Chinese industrial enterprises database from 1998 to 2012, we analyze the spatial distribution of China’s auto supplier plants with the calculation results of the EG index. We find an obvious characteristic of China’s auto supplier plants’ agglomeration is along the sea and river although the distribution of enterprises tends to be homogeneous. The space imbalance of new auto supplier plants has a "high - low - high" trend and the areas along the Yangtze River Economic Zone is the hot areas for location choices of auto supplier start-ups. To analyze the location choice of new auto supplier plants, we build up the Poisson regression model based on the prefecture level data. The results indicate that: (1) localization economies is dominated by its own industry, which could significantly increase the possibility of new firms to enter. (2)When the localized economy reaches a certain level, there will be a crowing effect. (3) In addition to the influence of agglomeration externality, the new auto supplier plants are sensitive to land, transportation and domestic market potential factors.