CASS stock surged 46% higher in pre-market trading on November 30, 2020.
China Automotive Systems, Inc. (Nasdaq: CAAS), 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.”