#China #Wuhan #China Automotive Systems #R-EPS #Nanjing Iveco

China Automotive Systems Celebrates Major Milestone

China Automotive Systems, Inc. (NASDAQ: CAAS), a prominent player in the power steering component market in China, recently made headlines as its largest subsidiary, Jingzhou Henglong Auto Parts Manufacturing Co., Ltd., hit a significant production and sales milestone. This subsidiary reported a stunning 35% growth year-over-year in production and sales for the fourth quarter of 2024, culminating in record-high monthly sales of over 620,000 units in December 2024, which represents a remarkable 46.7% year-over-year increase. Moreover, the total annual production and sales volume for 2024 surpassed an impressive 5 million units, showcasing an 18.5% growth compared to the previous year.

This success story is further enhanced by the company's announcement of its advanced R-EPS (Electric Power Steering) systems entering mass production. The R-EPS product line, which was developed for Nanjing Iveco, has successfully passed the crucial Production Part Approval Process (PPAP) assessment. This next-generation steering technology features an electric motor integrated with a control unit, along with a ball nut and belt drive reduction system. This innovative setup replaces traditional hydraulic systems, thereby increasing efficiency and providing better mileage and driving range.

One of the standout features of R-EPS is its capability to support autonomous driving functions, such as Automatic Parking, Lane Keep Assist (LKA), and Lane Follow Assist (LFA). This makes the R-EPS not only lighter than its hydraulic counterparts but also lays the groundwork for future advancements in driving automation. The compatibility of R-EPS extends to both medium- and heavy-duty passenger cars and light commercial vehicles, positioning CAAS and its product lines at the forefront of the evolving automotive landscape.

The progress of the R-EPS initiative underlines CAAS's commitment to innovation and high-quality engineering, an approach that resonates deeply with the ongoing trends within the automotive sector, particularly in embracing artificial intelligence in technology development. The firm has intensified its research and development activities, focusing on innovative electric products that enhance material science and manufacturing efficacy. Each R-EPS unit undergoes rigorous performance testing to ensure its stability and durability, reinforcing the brand's reputation for excellence.

Qizhou Wu, CEO of CAAS, remarked on the company's proactive stance, stating, "CAAS continues to move forward. In 2024, we anticipate our existing R-EPS production line will yield 100,000 units annually; however, with the planned expansion, our capacity is expected to soar to 250,000 units by 2025, with an anticipated increase to 400,000 units by 2027."

Based in Hubei Province, China, CAAS is not only a major supplier within the country but also caters to esteemed automobile manufacturers worldwide. Their extensive client roster includes well-known entities such as the China FAW Group, Dongfeng Auto Group, and BYD Auto, as well as international giants like Ford and Stellantis. With a production capacity exceeding 8 million sets of steering components annually, CAAS is poised to keep pace with the industry's growing demands and technological advancements.

In summation, the achievements in 2024 represent a stellar year for China Automotive Systems, highlighting both significant sales milestones and the introduction of promising driver assist technologies. As the automotive market continues to embrace innovation at unprecedented rates, CAAS stands ready to lead the charge into a more automated and efficient future in vehicle steering systems.