China Automotive Systems Awarded First South American EPS Contract | CAAS Stock News

, /PRNewswire/ -- China Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that its wholly owned subsidiary, Hubei Henglong Automotive System Group ("Henglong"), was awarded a contract for its C-EPS (Column-Assist Electric Power Steering) project for a new vehicle platform from a leading South American-based automotive manufacturer. This collaboration marks the first large-scale entry of the Group's electric power steering systems into the South American automotive supply chain. This contract marks another key achievement in the CAAS' international expansion strategy and lays the foundation to reach the Company's ambitious international goals for 2030.This vehicle platform will cover several gasoline fuel and hybrid passenger vehicle models, with planned annual sales volume of over 300,000 units and mass production is expected in early 2028.Henglong's successful full-process development of similar C-EPS products for European markets has earned high appreciation from OEM customers. This new collaboration in South America further demonstrates international automakers' growing confidence in Henglong's R&D and manufacturing capabilities for electronic control and steering systems.In 2012, Henglong established its first overseas factory in São Paulo, Brazil – CAAS Brazil's Imports and Trade in Automotive Parts Ltd. (Brazil Henglong) – and has been deeply rooted in the South American markets for over a decade. Leveraging its advanced technologies, quality control capabilities, and economies of scale built by its Chinese and Brazilian teams, Henglong has now amassed a market share of over 30% in the Brazilian steering system market.This C-EPS project development will deliver a comprehensive industrial upgrade for Brazil Henglong, migrating from single-function mechanical steering products to advanced electric power steering systems. According to the strategic plan, CAAS will establish a complete operational and support network to promote electric power steering in Brazil. New manufacturing capacity, engineering collaboration, secondary supply chains, and after-sales support will enable CAAS' deeper integration of advanced technology and superior localized services. C-EPS systems have an electric motor and assist mechanism attached directly to the steering column. By adding torque to the column via gears, C-EPS creates efficiency and saves both space and fuels.Mr. Qizhou Wu, the Chief Executive Officer of CAAS, commented, "The progress of this project will turbocharge our strategic expansion into the South American markets and provide crucial technological transformation in one of the key global automotive markets. Our growing presence in the South American markets also complements our strong footprint in Asia, Europe and North America as we continue to add to our global reach."About China Automotive Systems, Inc. Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 8 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Stellantis N.V. and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com. Forward-Looking StatementsThis press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict, and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.For further information, please contact:Jie LiChief Financial OfficerChina Automotive Systems, Inc.jieli@chl.com.cn Kevin TheissAwaken Advisors+1-212-510-8922Kevin@awakenlab.com SOURCE China Automotive Systems, Inc.