China Automotive Systems Won New Contract for Electric Power Steering

WUHAN, Hubei, China, July 12, 2010; China Automotive Systems, Inc. ("CAAS" or "the Company"), a leading power steering components and systems supplier in China, announced today that its subsidiary, Wuhan Jielong Power Steering Co. Ltd., has received a purchase order from Changan Automobile Company ("Changan"), for A10 electric power steering ("EPS") units. Changan, one of the top 5 automotive manufacturers in China, has been a customer for CAAS's hydraulic power steering for two years. The Company's EPS products successfully passed Changan's trial order and received positive feedback for its road test performance and quality standard. CAAS has now begun commercial shipments to Changan.

With growing interest in automotive fuel efficiency, Jielong's electric steering systems are drawing increasing attention from a growing number of OEMs and consumers.

This purchase order marks another milestone since the Company's first shipments of EPS to Suzuki in September 2009.

About China Automotive Systems, Inc.

Based in Hubei Province, 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 nine Sino-foreign joint ventures. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers 4 separate series of power steering with an annual production capacity of over 2.5 million sets, steering columns, steering oil pumps and steering hoses. Its customer base is comprised of leading Chinese 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., etc. For more information, please visit: http://www.caasauto.com/