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China Automotive Systems Expands into South America

In a landmark achievement for its international expansion strategy, China Automotive Systems, Inc. (CAAS), a prominent supplier of power steering components in China, has recently entered the South American market by securing a substantial contract for its C-EPS (Column-Assist Electric Power Steering) system. This milestone collaboration is with a major automotive manufacturer based in South America, marking the company's first large-scale venture into this region.

The awarded contract will see CAAS's wholly-owned subsidiary, Hubei Henglong Automotive System Group, launching its electric power steering technology for a new range of passenger vehicles that include both gasoline and hybrid models. With an anticipated annual sales volume exceeding 300,000 units, mass production is targeted for early 2028, highlighting CAAS's ambitious growth trajectory as it seeks to meet its international objectives by 2030.

A Growing Presence in the Automotive Supply Chain

The C-EPS system represents an evolution in steering technologies, where an electric motor assists the driver by providing torque directly to the steering column. This design not only optimizes performance but also enhances fuel efficiency by reducing mechanical loads. Given the increasing reliance on high-tech automotive solutions, this development is crucial for modern vehicle platforms.

Henglong has garnered recognition and admiration in the European markets for its well-developed C-EPS products, demonstrating its competence in research, development, and manufacturing capabilities for steering systems. The new collaboration in South America illustrates the rising confidence that international automotive manufacturers have in Henglong's advanced technologies.

Deepening Roots in South America

Having established its first overseas factory in São Paulo, Brazil, back in 2012, CAAS has been actively building its presence within the South American automotive market for over a decade. The subsidiary, known as Brazil Henglong, has utilized its comprehensive technologies and local manufacturing strength to achieve a remarkable 30% market share in the Brazilian steering system sector. This new contract serves to not only expand its product range from traditional mechanical steering systems to state-of-the-art electric power steering but also to foster local economic growth.

The strategic plan outlines the establishment of an extensive operational and support network to enhance the promotion of electric power steering systems across Brazil. With new manufacturing capacities, engineering collaboration, and comprehensive after-sales service, CAAS aims to deepen its integration of cutting-edge technology and localized services.

CEO's Vision for South American Expansion

Commenting on this significant contract, Mr. Qizhou Wu, CEO of CAAS, expressed enthusiasm about their strategic expansion into South America. He stated, "This initiative not only turbocharges our growth in one of the vital global automotive markets but also complements our robust presence in Asia, Europe, and North America, showcasing our ambitious expansion goals globally."

About China Automotive Systems, Inc.

China Automotive Systems, Inc., based in Hubei, boasts a solid standing as a premier supplier of power steering components for the automotive industry in China. Operating through various joint ventures and wholly owned subsidiaries, CAAS provides a comprehensive range of steering system parts for both passenger and commercial vehicles. Currently, it has an annual production capacity exceeding 8 million sets of steering products, serving renowned auto manufacturers such as China FAW Group, Dongfeng Auto Group, BYD Auto, and Ford Motor Company.

With this groundbreaking contract in South America, CAAS is not only poised to strengthen its global footprint but also to lead the way in the transition towards more sustainable and efficient automotive technologies. As CAAS looks ahead, the future appears bright with opportunities ripe for innovation and growth in the electric power steering sector.