China Automotive Systems (CAAS) Expands into South America with Electric Power Steering Contract

China Automotive Systems Expands into South America with Electric Power Steering Contract

China Automotive Systems, Inc. (CAAS), a leading supplier of power steering components, announces a significant expansion into the South American automotive market through its subsidiary, Hubei Henglong Automotive System Group. On December 17, 2025, Henglong secures a contract for its Column-Assist Electric Power Steering (C-EPS) system from a major South American automotive manufacturer. This marks Henglong's first large-scale entry into the South American supply chain, aligning with CAAS's broader strategy to expand internationally and achieve substantial growth by 2030.

The C-EPS system is designed to be integrated into a vehicle platform that will cater to various gasoline and hybrid passenger models, with expectations of annual sales exceeding 300,000 units. Mass production is anticipated to commence in early 2028, demonstrating CAAS's commitment to innovation and modernization within the automotive sector. Henglong's successful history in developing C-EPS products for European markets has established a strong reputation among original equipment manufacturers (OEMs), providing the firm with a competitive edge as it ventures into South America.

This project signifies a pivotal industrial shift for Henglong in Brazil, as it transitions from traditional mechanical steering systems to advanced electric power steering technology. Since establishing its first overseas factory in São Paulo in 2012, Henglong has captured over 30% of the Brazilian steering system market, attributed to its cutting-edge technologies and stringent quality control. CAAS's strategic vision includes developing a robust operational network to promote electric power steering in Brazil, encompassing increased manufacturing capacity, engineering collaborations, and comprehensive after-sales support. CEO Mr. Qizhou Wu highlights that this initiative will not only bolster the company's growth in South America but also drive essential technological advancements within the global automotive industry.

In addition to the C-EPS contract, CAAS is strategically positioning itself to respond to the increasing global demand for electric vehicle components. As the automotive industry shifts towards sustainability and efficiency, the integration of electric power steering aligns with broader trends favoring eco-friendly technologies. By leveraging its expertise in power steering solutions, CAAS is poised to play a critical role in the transformation of the automotive landscape in South America and beyond.

Moreover, this expansion is likely to strengthen CAAS's competitive position against other automotive suppliers in the region. As the South American automotive market continues to evolve, the company’s proactive approach in establishing a foothold with innovative products like the C-EPS system may yield significant dividends as demand for advanced automotive technologies grows.