Abstract: Innovation ability plays an important role in the process of " lane changing and overtaking " by local brand manufacturers. This article discusses the problem based on the successful case of BAIC and BYD in the new energy car market from the perspective of innovation ability. The study found that, with the help of innovation ability, local brand manufacturers to achieve " lane changing and overtaking " need to go through different stages, such as starting, catching up and surpassing. The study also found that, the ability of opportunity identification, resource integration and innovation synergy are the key to the innovation ability of local brand manufacturers.