WUHAN, China, Nov. 30, 2020
- 120,000 steering units shipped for electric vehicle ("EV") models so far in 2020; may reach over 140,000 units by year end 2020 -
- targets sales of over 200,000 steering units for Chinese EV vehicles in 2021 -
WUHAN, China, Nov. 30, 2020 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that it shipped approximately 120,000 units from its portfolio of electric power steering ("EPS") products for use in Chinese electric vehicles ("EV") during 2020.
Among the Chinese EV OEMs that are utilizing CAAS's EPS units in 2020 are: Great Wall Motors, China's largest SUV and pickup manufacturer, Chery Automobile, the largest state-owned car manufacturer in China, Beijing Auto, part of a top 5 automobile manufacturing group in China and which has been the leader in the production of BEVs for 7 years in a row, JAC Motors, a leading manufacturer of commercial vehicles in China and a major producer of passenger vehicles in China, Dongfeng Auto which is one of the 5 largest automobile manufacturers in China, and Hozon Auto which is an emerging all-EV manufacturer developing innovative technology to create intelligent EV models.
Sales of Chinese EVs approximately doubled year-over-year to 144,000 units in the month of October 2020. With this rapid growth of EVs occurring in China, the outlook is for booming growth as the Chinese government has set an EV car target of 25% of all new cars by 2025.
Mr. Hanlin Chen, chairman of CAAS, commented, "These sales continue our long trend of providing advanced steering products to the largest automobile manufacturers in China. We are pleased to meet their high requirements for excellent performance and quality. We have shipped a large number of our EPS steering products to Great Wall Motors for their new EV model in 2020, and will continue to ship to them in 2021. Given our sales momentum, we expect to sell over 140,000 steering units for use in Chinese EV models in 2020 and to reach approximately 200,000 units in 2021. The sales of our advanced EPS products to the largest automobile companies in China complements our sales of state-of-the-art hydraulic products to the leading Chinese vehicle OEMs and global Tier-1 vehicle OEMs we supply in the North and South American markets."
Mr. Qizhou Wu, chief executive officer of CAAS, commented, "We have a history of our products winning awards for their high quality and performance and these contracts confirm our EPS products meet or exceed the requirements of the leading Chinese automotive manufacturers for their EV models. Our joint venture with KYB (China) Investment Co., Ltd. ("KYB"), a wholly owned company of Japan KYB Co., Ltd., is advancing our EPS technology as we penetrate the Chinese EV market. Our joint venture with Hyoseong Electric Co. Ltd. to design and manufacture small electric motors will further improve the capabilities of our EPS products in 2021. Other new products are under development to meet the future needs of the surging Chinese EV market."
Mr. Jie Li, chief financial officer of CAAS, commented, "Our portfolio of EPS products has the potential to become a major growth channel over the next few years as we further capture market share in the burgeoning market for Chinese electric vehicles. Our EPS systems are also well suited to be used in a wide variety of vehicles in addition to electric vehicles."
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 ten Sino-foreign joint ventures. 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 6 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 Chrysler Group LLC and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com.
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. These forward-looking statements include statements regarding the qualitative and quantitative effects of the accounting errors, the periods involved, the nature of the Company's review and any anticipated conclusions of the Company or its management and other statements that are not historical facts. 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 Form 10-K annual report filed with the Securities and Exchange Commission on March 28, 2019, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. If the outbreak of COVID-19 is not effectively and timely controlled, our business operations and financial condition may be materially and adversely affected as a result of the deteriorating market outlook for automobile sales, the slowdown in regional and national economic growth, weakened liquidity and financial condition of our customers or other factors that we cannot foresee. 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:
Chief Financial Officer
China Automotive Systems, Inc.
SOURCE China Automotive Systems, Inc.
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