China Automotive Systems Announces Subsidiary's Annual Sales Milestone of 5 Million Units and New Driver Assist Products in Mass Production
China Automotive Systems (CAAS) reported significant growth in Q4 2024, with its subsidiary Jingzhou Henglong achieving a 35% year-over-year increase in production and sales. The company reached a record monthly high of over 620,000 units in December 2024, marking a 46.7% increase from the previous year. Annual production and sales volume for 2024 exceeded 5 million units, representing an 18.5% growth.
The company also announced the successful mass production launch of its R-EPS steering product for Nanjing Iveco after passing PPAP assessment. The R-EPS system features advanced capabilities including automatic parking and lane assistance functions, designed for medium and heavy-duty passenger vehicles. CAAS plans to expand its R-EPS production capacity from 100,000 units in 2024 to 250,000 units in 2025 and 400,000 units by 2027.
China Automotive Systems (CAAS) ha riportato una crescita significativa nel quarto trimestre del 2024, con la sua controllata Jingzhou Henglong che ha registrato un aumento del 35% della produzione e delle vendite rispetto all'anno precedente. L'azienda ha raggiunto un record mensile di oltre 620.000 unità a dicembre 2024, segnando un incremento del 46,7% rispetto all'anno precedente. Il volume annuale di produzione e vendite per il 2024 ha superato 5 milioni di unità, rappresentando una crescita del 18,5%.
L'azienda ha anche annunciato il lancio della produzione di massa del suo prodotto di sterzo R-EPS per Nanjing Iveco dopo aver superato la valutazione PPAP. Il sistema R-EPS presenta capacità avanzate, tra cui funzioni di parcheggio automatico e assistenza al mantenimento della corsia, progettate per veicoli passeggeri di medie e pesanti dimensioni. CAAS prevede di espandere la sua capacità di produzione R-EPS da 100.000 unità nel 2024 a 250.000 unità nel 2025 e 400.000 unità entro il 2027.
China Automotive Systems (CAAS) reportó un crecimiento significativo en el cuarto trimestre de 2024, con su subsidiaria Jingzhou Henglong logrando un aumento del 35% en la producción y las ventas en comparación con el año anterior. La compañía alcanzó un récord mensual de más de 620,000 unidades en diciembre de 2024, marcando un aumento del 46.7% respecto al año anterior. El volumen anual de producción y ventas para 2024 superó las 5 millones de unidades, representando un crecimiento del 18.5%.
La compañía también anunció el exitoso lanzamiento de producción en masa de su producto de dirección R-EPS para Nanjing Iveco después de aprobar la evaluación PPAP. El sistema R-EPS presenta capacidades avanzadas que incluyen funciones de estacionamiento automático y asistencia de carril, diseñado para vehículos de pasajeros medianos y pesados. CAAS planea expandir su capacidad de producción de R-EPS de 100,000 unidades en 2024 a 250,000 unidades en 2025 y 400,000 unidades para 2027.
중국 자동차 시스템(China Automotive Systems, CAAS)은 2024년 4분기에 상당한 성장을 보고했으며, 자회사인 진저우 헝롱(Jingzhou Henglong)이 전년 대비 35% 증가한 생산 및 판매를 달성했습니다. 이 회사는 2024년 12월에 620,000개 이상의 단위라는 기록적인 월 생산량을 기록했으며, 이는 전년도 대비 46.7% 증가한 수치입니다. 2024년의 연간 생산 및 판매량은 500만 개 이상에 달하며, 이는 18.5% 성장한 것입니다.
또한 이 회사는 PPAP 평가를 통과한 후 난징 이베코(Nanjing Iveco)를 위한 R-EPS 조향 제품의 성공적인 대량 생산 출시를 발표했습니다. R-EPS 시스템은 중형 및 대형 승용차를 위해 설계된 자동 주차 및 차선 유지 기능을 포함한 고급 기능을 갖추고 있습니다. CAAS는 2024년 10만 개에서 시작하여 2025년까지 25만 개로, 2027년까지 40만 개로 R-EPS 생산 능력을 확장할 계획입니다.
China Automotive Systems (CAAS) a signalé une croissance significative au quatrième trimestre de 2024, avec sa filiale Jingzhou Henglong enregistrant une augmentation de 35% de la production et des ventes par rapport à l'année précédente. L'entreprise a atteint un record mensuel de plus de 620 000 unités en décembre 2024, marquant une augmentation de 46,7% par rapport à l'année précédente. Le volume annuel de production et de vente pour 2024 a dépassé 5 millions d'unités, représentant une croissance de 18,5%.
L'entreprise a également annoncé le lancement réussi de la production de masse de son produit de direction R-EPS pour Nanjing Iveco après avoir passé l'évaluation PPAP. Le système R-EPS dispose de capacités avancées, y compris des fonctions de stationnement automatique et d'assistance au maintien de la voie, conçu pour les véhicules passagers de taille moyenne et lourde. CAAS prévoit d'élargir sa capacité de production de R-EPS de 100 000 unités en 2024 à 250 000 unités en 2025 et 400 000 unités d'ici 2027.
China Automotive Systems (CAAS) berichtete von einem signifikanten Wachstum im 4. Quartal 2024, wobei die Tochtergesellschaft Jingzhou Henglong einen Anstieg der Produktion und des Umsatzes um 35% im Vergleich zum Vorjahr verzeichnete. Das Unternehmen erreichte im Dezember 2024 einen monatlichen Rekord von über 620.000 Einheiten, was einem Anstieg von 46,7% gegenüber dem Vorjahr entspricht. Das jährliche Produktions- und Verkaufsvolumen für 2024 überstieg 5 Millionen Einheiten, was ein Wachstum von 18,5% darstellt.
Das Unternehmen gab außerdem den erfolgreichen Start der Großproduktion seines R-EPS-Lenkprodukts für Nanjing Iveco bekannt, nachdem die PPAP-Bewertung bestanden wurde. Das R-EPS-System bietet fortschrittliche Funktionen, darunter automatische Park- und Fahrbahnhilfen, die für mittel- und schwerlastige Personenkraftwagen entwickelt wurden. CAAS plant, die Produktionskapazität für R-EPS von 100.000 Einheiten im Jahr 2024 auf 250.000 Einheiten im Jahr 2025 und 400.000 Einheiten bis 2027 zu erweitern.
- 35% YoY production and sales increase in Q4 2024
- Record monthly sales of 620,000 units in December 2024 (+46.7% YoY)
- Annual sales exceeded 5 million units in 2024 (+18.5% YoY)
- Successful launch of R-EPS product line with Nanjing Iveco
- Planned R-EPS production capacity expansion from 100,000 to 400,000 units by 2027
- None.
Insights
The operational performance metrics and technological advancement announcements from CAAS warrant careful attention. The 35% YoY growth in Q4 2024 and record 620,000 monthly units in December signal robust demand and improved operational efficiency. More importantly, the 18.5% annual growth to 5 million units demonstrates sustained market penetration in China's automotive sector.
The R-EPS (Rack Electric Power Steering) production milestone is particularly significant for three reasons: First, the technology's compatibility with medium/heavy-duty vehicles opens new market segments beyond traditional passenger vehicles. Second, the AI integration and autonomous driving capabilities position CAAS at the forefront of the industry's technological transformation. Third, the planned capacity expansion from 100,000 to 250,000 units in 2025 and 400,000 units by 2027 indicates strong order visibility and market confidence.
The partnership with Nanjing Iveco, a joint venture with a major European commercial vehicle manufacturer, validates CAAS's R&D capabilities and quality standards. The successful PPAP assessment suggests robust manufacturing processes and quality control systems. The lighter weight and improved efficiency of R-EPS systems should translate into better margins compared to traditional hydraulic systems, while the advanced driver assistance features align with the industry's shift toward autonomous vehicle technology.
The remarkable growth trajectory and technological advancement position CAAS strategically in the evolving automotive steering systems market. The 46.7% YoY increase in December sales particularly stands out, suggesting accelerating market adoption and possible market share gains. The R-EPS technology launch with Nanjing Iveco represents a strategic entry into the commercial vehicle segment, where electrification and autonomous capabilities are becoming increasingly critical.
The phased capacity expansion approach demonstrates prudent capital allocation while maintaining flexibility to meet growing demand. The focus on AI integration and material science improvements in R-EPS development indicates a comprehensive R&D strategy that addresses both current market needs and future technological requirements. The successful commercialization with a prominent joint venture partner could lead to additional opportunities with other commercial vehicle manufacturers seeking advanced steering solutions.
The transition from hydraulic to electric power steering in commercial vehicles represents a significant market opportunity. CAAS's early mover advantage in this segment, combined with its established manufacturing scale and R&D capabilities, positions it favorably to capture a substantial share of this growing market. The compatibility with autonomous driving functions further enhances the long-term growth potential as the industry moves toward higher levels of vehicle automation.
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.
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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.
jieli@chl.com.cn
Kevin Theiss
Awaken Advisors
+1-212-521-4050
Kevin@awakenlab.com
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SOURCE China Automotive Systems, Inc.
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