China Automotive Systems' Joint Venture Honored as a Core Supplier by Chery Auto

China Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components and systems supplier in China, today announced that its joint venture, Wuhu Henglong Auto Steering Systems ("WHAS"), was named a Core Supplier by Chery Automotive Co., Ltd. ("Chery Auto"). Established in May 2006, WHAS is based in Wuhu, Anhui Province near Chery Auto's headquarters. Under the joint venture agreement, China Automotive Systems and Chery Auto own 77.3% and 22.7%, respectively, of the joint venture.

In December 2007, Chery Auto honored 30 of its Core Suppliers at its Annual Suppliers Meeting in the city of Boao in Hainan province. With its reliable quality, new product development, and timely delivery, Wuhu Henglong Auto Steering Systems was among the 30 Core Suppliers named for the year 2007. WHAS's CEO Yusheng Han was present as an honored guest of Chery and he received the prize on behalf of the Joint Venture.

The construction of WHAS's facility was completed in October 2007 with a production capacity of 300,000 sets of power steering systems and components annually. Two assembly lines including an automated assembly line, are now operating at commercial production rates. The new state-of-the-art facility is highly equipped with advanced IT systems including MES, ERP and SCADA programs to manage production, inventory and logistics. Subcomponents are all bar-coded for better tracking and quality control. Most production of the joint venture is dedicated to satisfy Chery Auto's growing need for advanced power steering systems.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "After 3 months of testing and fine tuning, we are very excited to see the new facility is ramping up production to continue to fuel the rapid growth of Chery Auto. With the JV's local presence, our R&D team, engineering team and production teams are working closely with the Chery Auto team to develop new power steering models, ensure high quality and further improve production efficiency. Up to now, we have developed 29 models for Chery Auto. While Chery Auto is on its way to increase penetration of the domestic automobile market and broaden global expansion, we are also accordingly upgrading our product quality and production capacity to enhance our leadership in China and prepare for a strong global launch."

According to the China Association of Automotive Manufacturers, Chery Auto produced and sold over 300,000 vehicles in the first 11 months of 2007. For the second consecutive year, Chery Auto was ranked the Number 3 auto maker in China, after Volkswagen and General Motors.

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 1.1 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., Donfeng Auto Group Co., Ltd., Brilliance China Automotive Holdings Ltd., Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd., etc.