China Automotive Systems Wins First R-EPS Steering Order From Major European Automaker

Core Viewpoint - China Automotive Systems, Inc. (CAAS) has secured its first R-EPS product order from a major European automobile manufacturer, marking a significant milestone in its global expansion and recognition of its technological capabilities in high-end electric power steering systems [1][2]. Company Summary - CAAS's largest subsidiary, Jingzhou Henglong, received an order with annual sales exceeding US$100 million, covering multiple vehicle models, with mass production expected to start by 2027 [2]. - The company is expanding its R-EPS annual production capacity to reach 250,000 units in 2025, with expectations to exceed 1 million units by 2030 to meet rising demand from various automobile OEMs [5]. - CAAS operates through sixteen Sino-foreign joint ventures and wholly owned subsidiaries, offering a full range of steering system parts for both passenger and commercial vehicles, with an annual production capacity of over 8 million sets of steering gears, columns, and hoses [5]. Industry Summary - R-EPS has become essential for mid-to-high-end vehicle models due to its reliability, efficiency, and responsiveness, leading to increased R&D investments in this area [3]. - The project signifies a strategic shift for Chinese auto part suppliers from a focus on cost advantages to becoming technology content providers of high value-added products [4]. - CAAS is recognized as a leading supplier in China's steering industry, driving technology upgrades in the steering supply chain and contributing to the development of high-quality steering products [4].