China Automotive Systems Column Sales Reached New Record

WUHAN, Hubei, China, Dec. 11, 2006 /Xinhua-PRNewswire/ -- China Automotive Systems, Inc. , a leading power steering components and systems supplier in China, today reported that total steering column sales reached approximately 262,000 units at the end of November, compared to 139,000 units during the full year of 2005. Since April 2006, Henglong Automotive Parts Inc., one of China Automotive Systems' fast growing subsidiaries, has experienced strong growth due to rising auto sales in the Chinese domestic market.

"We are delighted with the progress in our steering column sales. Steering columns are an integral part of our power steering system and we are pleased that our customers have demonstrated confidence in this product offering. We continue to maintain our market leadership in steering gears and seek to capture further growth potential in other steering components, providing a "one-stop shop" solution to our OEM customers," said Mr. Hanlin Chen, Chairman and Chief Executive Officer of China Automotive Systems.

About CAAS

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 seven 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 and 307 models of power steering with an annual production capacity of 800,000 sets of steering systems. Its customer base is comprised of leading Chinese auto manufacturers such as China FAW Group, Corp., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. etc. For more information, please visit: http://www.caasauto.com/

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and, condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

  For further information, please contact:

  Mr. Jie Li, Investor Relations and Communications
  China Automotive Systems, Inc.
  Tel:    +86-27-5981-8527
  Email: jieli@chl.com.cn

  Christopher Chu
  The Global Consulting Group
  Tel:    +1-646-284-9426
  Email: cchu@hfgcg.com

FCMN Contact: cchu@hfgcg.com