China Automotive Systems, Inc. (NASDAQ: CAAS) has secured a contract for its Column‑Assist Electric Power Steering (C‑EPS) system with a leading South American automotive manufacturer. The deal covers gasoline and hybrid passenger‑vehicle models and is expected to generate more than 300,000 units per year, with mass production slated to begin in early 2028.
The contract builds on CAAS’s established presence in Brazil, where its wholly‑owned subsidiary, Hubei Henglong Automotive System Group, has operated since 2012 and commands roughly 30% of the local steering‑system market. By adding a new C‑EPS product line, CAAS is positioning itself to capture a larger share of the region’s growing electrified‑vehicle fleet and to deepen its engineering collaboration with the OEM.
CAAS’s Q3 2025 earnings—an EPS of $0.21 versus a consensus of $0.17—reflected strong demand for its steering‑system portfolio and disciplined cost management. The company raised its full‑year 2025 revenue guidance to $730 million, up from $700 million, and reiterated its 2030 goal of delivering 1 million rear‑wheel active‑steering units. The South American contract is a key component of that trajectory, providing a steady revenue stream and a platform for future EPS deployments.
CEO Qizhou Wu said the deal would "turbocharge our strategic expansion into the South American markets," underscoring CAAS’s intent to leverage its Brazilian manufacturing base and engineering expertise to accelerate EPS adoption in the region. The partnership will involve new manufacturing capacity, engineering collaboration, secondary supply chains, and after‑sales support, further integrating CAAS’s advanced steering technology into the local ecosystem.
The announcement comes amid a broader industry shift toward electrification and advanced driver‑assist systems. C‑EPS demand is rising as automakers replace mechanical steering with lighter, more efficient electric units, and CAAS’s technology is positioned to benefit from that trend. While the contract’s exact financial contribution is not disclosed, the deal signals a strategic foothold in a high‑growth market and strengthens CAAS’s competitive positioning against established EPS suppliers in South America.
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