CAAS Supplying North American Aftermarket Steering Gears to Global OEM

HUBEI PROVINCE--China, Dec. 7, 2011: China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, announced today that it has been selected as a supplier of aftermarket power steering gears to a global OEM's parts division for use in one SUV model in North America. The gears are being produced by the Company in China and exported to North America.

The SUV is a well-established model in North America that has been in production for several years and has experienced strong growth in the first nine months of 2011. The supply agreement was reached in 2010 partially based on CAAS's excellent product quality and delivery record.

Mr. Hanlin Chen, Chairman of CAAS, commented, "We have proven our products' high quality, performance and value to our many customers including some of the top selling vehicles. Technological proficiency is our core strength and we aim to further enhance our product innovation. With 3 high-caliber research centers and a 200-member professional research team specializing in product development, testing, optimization, and new material development, we have over the years amassed an intellectual property portfolio consisting of 12 power steering technology patents and 2 auto parts trademarks in China. Our superior technologies behind our power steering products help ensure the safety and reliability of vehicles in some of the most challenging terrains," Mr. Chen concluded.

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 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 four separate series of power steering with an annual production capacity of over 3.5 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., Chery Automobile Co., Ltd. and Chrysler North America outside of North America.