WUHAN, China, Jan. 24, 2025 /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 largest subsidiary by sales, Jingzhou Henglong Auto Parts Manufacturing Co., Ltd. ("Jingzhou Henglong"), achieved a production and sales increase of 35% year-over-year in the fourth quarter of 2024, and reached a new single monthly record high sales and production in December 2024 of more than 620,000 units, a 46.7% year-over-year increase. For 2024, annual production and sales volume exceeded 5 million units, representing an 18.5% year-over-year growth.
The Company also announced that the R-EPS steering product developed for Nanjing Iveco has entered mass production after successfully passing the Production Part Approval Process ("PPAP") assessment. The R-EPS steering gears feature an electric motor with control unit, and a ball nut and belt drive reduction system, compared with hydraulic pressure, to provide steering assist. R-EPS is lighter with improved efficiency creating increased mileage and range. R-EPS architecture is capable of performing autonomous driving functions such as Automatic Parking, Lane Keep Assist (LKA) and Lane Follow Assist (LFA). R-EPS is compatible with medium- and heavy-duty passenger vehicles and light commercial vehicles.
The success of the R-EPS project is a further testament to CAAS' superior engineering and technology development by incorporating artificial intelligence. With the growing trend of embracing artificial intelligence in the automotive industry, CAAS accelerated the research and development of innovative electric products, focusing on improved material science and manufacturing processes. All R-EPS products endured intense performance testing to ensure stability and durability.
Nanjing Iveco Automobile Co Ltd is a joint venture between Iveco and Nanjing Automobile (Group) Corporation.
Mr. Qizhou Wu, the Chief Executive Officer of CAAS, commented, "CAAS continues to march forward. In 2024, our existing R-EPS production line could produce 100,000 units per annum, and with the new R-EPS production line expansion, annual production capacity will reach 250,000 units in 2025 and is expected to reach 400,000 units by 2027."
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: .
Forward-Looking Statements
This 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, 2024, 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 Li
Chief Financial Officer
China Automotive Systems, Inc.
Kevin Theiss
Awaken Advisors
+1-212-521-4050