#China #share repurchase #Wuhan #China Automotive Systems #EPS Sales

China Automotive Systems Sets New Sales Records in Q3 2026

In a significant development for the automotive industry, China Automotive Systems, Inc. (Nasdaq: CAAS) has announced its preliminary sales figures for electric power steering (EPS) products for the third quarter of 2026. The company reported record sales of 567,314 units during this period, reflecting a remarkable 40.1% increase compared to the same quarter the previous year. This surge marks a pivotal moment for CAAS as it continues to consolidate its position as a leading supplier of power steering components in China.

Record Sales Across the Board

The strong performance is underscored by total EPS sales reaching an impressive 1,461,381 units in the first nine months of 2026, an increase of 32.7% compared to the first nine months of 2025. Notably, the company’s subsidiary Henglong KYB achieved 466,899 units in EPS sales during the third quarter, reflecting a 33.1% year-over-year growth. Additionally, Wuhu saw a staggering 138.6% increase, selling 101,040 units in Q3, contributing to a 82.7% rise for the first nine months.

This growth is significant as it indicates that CAAS is successfully meeting the rising demand for advanced steering systems within the automotive sector, particularly in a market that increasingly favors electrically-assisted systems.

Strategic Share Repurchase Program

In conjunction with the sales announcement, CAAS's board of directors has approved a share repurchase program of up to $5 million, which will allow the company to buy back its shares over the next 12 months. The repurchases will occur at prevailing market prices and are projected not to exceed $5.50 per share. This initiative aims to enhance shareholder value and reflects management's confidence in the company's sustained performance and potential for growth.

Chairman Hanlin Chen stressed that the current stock valuation underrepresents the company’s growth trajectory in sales and profits. He emphasized the impact of innovative products and global partnerships that CAAS is cultivating to further enhance its market presence.

Innovation Driving Future Growth

The company is not just resting on its current achievements; it is actively pursuing the development of cutting-edge electric power steering products. CEO Qizhou Wu pointed out that ongoing technological advancements are expected to attract new clients while serving existing customers better. With growing sales to tier-one vehicle manufacturers across North America and Europe, CAAS is expanding its product portfolio to include offerings for new energy vehicles, which are becoming increasingly important in the global automotive landscape.

CAAS’s financial prowess is evident, with Chief Financial Officer Jie Li noting that the company’s market capitalization does not reflect its robust financial metrics, including healthy cash flow and substantial book value. Despite industry-wide challenges, the company continues to showcase strong free cash flow, signifying a solid financial foundation moving forward.

Conclusion

As China Automotive Systems enters the final quarter of 2026, it demonstrates remarkable resilience and ambition in an evolving automotive industry. The record sales of EPS products and the new share repurchase initiative signal readiness to tackle upcoming challenges and capitalize on opportunities in both domestic and international markets. With a focus on innovation and expansion, CAAS is set to remain a critical player in the automotive components sector.

For further information and updates, visit China Automotive Systems' official website.