To utilize vehicle design knowledge reasonably and effectively, ontology is introduced in this paper and vehicle design domain ontology is constructed within three steps which are: extracting the significant terminologies and concepts in the field, establishing ontology framework, constructing vehicle design domain ontological relation tree combining development tool. According to the method, vehicle design ontological relation tree is built and evaluated through descriptive evaluation and verifiable evaluation. The results are applied in knowledge representation which adopts SVPO (Subject + Verb + Parameter + Object) mode and knowledge retrieval, the effectiveness of ontology is verified in our system. Finally the paper concluded a concurrent method of ontology construction.