The purpose of this study is to analyze the relations between the factors that enable national competitive advantage and the establishment of competitive superiority in automotive industry through a comprehensive analytical model. Bayesian networks (BN) are used to investigate the associations of different factors in the automotive industry which lead to competitive advantage. The results of the study focus on building a road map for the automotive sector policy makers in their way to improve the competitiveness through scenario analysis. Using the probabilistic dependency structure of the Bayesian network all of the variables in the model can be estimated. Thus, with the proposed model the automotive industry can be analyzed as a whole system and not only in terms of single variables. Findings of the model indicate that technological developments in automotive industry can alter the nature of competition in this industry