With the rapid development of intelligent technology, the construction of smart cities with the goal of creating a harmonious human life has become a new hot spot in the world. A new round of information technology revolution, represented by the Internet, big data, cloud computing, artificial intelligence (AI), and fifth-generation mobile communications (5G), is driving profound changes in the automotive industry. Smart vehicles (also known as intelligent connected vehicles) that integrate many high-tech technologies to provide safer, more convenient, and low-carbon comprehensive travel solutions have become an inevitable form of future vehicles. This paper constructs a three-level supply chain consisting of high-performance chip suppliers, smart car manufacturers, and retailers. On the basis of considering the level of product innovation and sales effort, Stackelberg game method is used to study the influence of each player in the supply chain on each parameter and the profit of each player under three scenarios: centralized decision making, nonsharing of innovation cost, and sharing of innovation cost. The results show that: when the level of sales effort has nothing to do with the level of innovation, the level of product innovation and the total profit of the supply chain increase with the improvement of the retailer’s sales ability; when the level of sales effort is related to the level of innovation, the level of product innovation under the cost-sharing decision model is greater than the case of no cost sharing, but the total profit of the supply chain is less than the case of no cost sharing.