Intelligent and Connected Vehicles ( ICV) is a new generation of vehicles equipped with advanced sensors，controllers and actuators，and integrated with modern communication and network technologies. It can realize intelligent information exchange and sharing between vehicle and X（X——pedestrian，vehicle，road，background, etc.）, with the functionalities of environment sensing，intelligent decision-making and cooperative control．It is safer，cleaner and smarter，and finally can replace the human driver．ICV becomes hotspot all around the world and it is highly concerned by Chinese government. National projects(e.g.,“13th Five Year Plan”and “Made in China 2025”) have paid a lot attention to the development of ICV． China's Ministry of Industry and Information Technology has established a demonstration area of ICV in Shanghai，thus Shanghai became the first pilot city of intelligent vehicle and autonomous driving. After the adjustment and transition of industrial structure，Shanghai has initially formed the industrial distribution covering environment sensing，intelligent decision-making，actuator， human-computer interaction and vehicle integration. However, currently Shanghai is still in the beginning stage and there exists a large gap with world advanced level in both the core technology and marketization. The technical difficulties and development problems of Shanghai’s IVC industry will be discussed，and for further analysis on the status quo and development trend of Shanghai’s ICV industry, several evaluation indicators will be introduced and applied to the Analytic Hierarchy Process（AHP）in order to analyze the advantages and disadvantages of Shanghai’s ICV industrial chain. By comprehensive ranking of the whole industrial chain, the advantage link of the industry which needs promotion will be found out, and so is the disadvantage link which needs improvement and reinforce.