China Automotive Systems Signs Strategic Cooperation MoU With KYB-UMW to Advance High-End Manufacturing in Malaysia and Further Develop ASEAN Market
Strategic Partnership Announcement: China Automotive Systems, Inc. (CAAS) announced a strategic cooperation memorandum with KYB-UMW Sdn Bhd in Malaysia, focusing on technology transfer and joint production of automotive components, particularly steering systems.
Local Manufacturing and Market Expansion: The collaboration aims to establish a regional manufacturing and supply system in Malaysia, enhancing competitiveness in the ASEAN automotive market and providing high-quality steering solutions for OEMs and the aftermarket.
Advanced Manufacturing Plant: A new advanced manufacturing plant (SP25) is under construction and expected to be operational in 2026, dedicated to producing steering system products using Hubei Henglong's technology.
Long-term Growth Strategy: The partnership represents a shift towards value chain co-creation, with plans to explore further opportunities in the OEM and aftermarket sectors, contributing to the transformation of Malaysia's automotive industry.
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- Clear Strategic Goals: China Automotive Systems' 2026-2030 Strategic Plan sets an ambitious target of exceeding ¥20 billion in total sales by 2030, showcasing the company's determination to succeed in global markets.
- Accelerated Global Expansion: The plan emphasizes the need to maintain a leading position in the domestic market while accelerating the construction of a 'China + N' global manufacturing and supply chain network, enhancing local presence in key markets such as North America, South America, Europe, and Southeast Asia.
- Strengthened Technological Leadership: The company will increase R&D investment focusing on cutting-edge technologies like steer-by-wire and rear-wheel steering, aiming for key breakthroughs and standard-setting in the intelligent chassis sector.
- Exceptional Systems Development: By establishing a 'zero-defect' quality culture and lean automated manufacturing systems, China Automotive Systems will create a robust operational foundation that enhances competitiveness and resilience, supporting its strategic sales goals for 2030.

- Clear Strategic Goals: China Automotive Systems' 2026-2030 Strategic Plan, implemented on January 1, 2026, aims to exceed ¥20 billion in total sales by 2030, showcasing the company's ambition and determination in the global market.
- Accelerated Global Expansion: The plan emphasizes the acceleration of a
- International Expansion Opportunity: China Automotive Systems' wholly-owned subsidiary, Hubei Henglong, has secured a C-EPS project contract from a leading South American automotive manufacturer, marking the first large-scale entry of its electric power steering systems into the South American market, further advancing the company's internationalization strategy.
- Significant Market Potential: The project is expected to achieve an annual sales volume of over 300,000 units, with mass production slated for early 2028, highlighting China Automotive Systems' critical role and future growth potential within the global automotive supply chain.
- Technological Upgrade Transformation: The C-EPS project will transition Brazil Henglong from single-function mechanical steering products to advanced electric power steering systems, enhancing product competitiveness and meeting market demands for efficiency.
- Strategic Network Development: The company plans to establish a comprehensive operational and support network to promote electric power steering in Brazil, enhancing localized service capabilities and enabling deeper market integration and technology application.
- International Expansion Milestone: China Automotive Systems' wholly-owned subsidiary, Hubei Henglong, has secured a C-EPS project contract from a leading South American automotive manufacturer, marking the first large-scale entry of its electric power steering systems into the South American market and advancing the company's international strategy.
- Significant Market Potential: The project is expected to achieve an annual sales volume of over 300,000 units, with mass production slated for early 2028, highlighting CAAS's critical role and future growth potential in the global automotive supply chain.
- Technological Upgrade and Market Confidence: Henglong's successful development of C-EPS products for European markets has garnered high praise from OEM customers, and this new collaboration in South America further demonstrates international automakers' growing confidence in its R&D and manufacturing capabilities, enhancing its competitive edge.
- Strategic Investment and Localized Services: CAAS plans to establish a comprehensive operational and support network in Brazil to promote electric power steering, enhancing service quality through new manufacturing capacity and after-sales support, which will facilitate deeper integration of advanced technology in the global market.
- Production Line Launch: China Automotive Systems' subsidiary Hyoseong has entered the final commissioning stage of its new 115-platform electric steering motor production line in Wuhan, with mass production set to begin in mid-December 2025, marking a significant advancement in the company's electric steering technology.
- Technological Breakthrough: The new electric steering motor delivers torque exceeding 20 N•m and has successfully passed verification from approximately ten leading OEMs after three years of R&D, indicating its technological excellence and readiness for commercial production, which is expected to drive growth in the global commercial vehicle market.
- Market Expansion: This electric steering system combines the durability of a recirculating ball mechanism with the efficiency of electric power, offering environmental advantages and the capability to integrate into advanced driver-assist systems, thereby enhancing Hyoseong's competitiveness in the global commercial vehicle sector.
- Strategic Collaboration: The new production line, co-developed with Wiselink Technology, has undergone rigorous expert reviews, showcasing the company's leadership in intelligent electric steering and laying a solid foundation for future technological R&D and market expansion.
- Production Line Launch: China Automotive Systems' subsidiary, Hyoseong (Wuhan) Motion Mechatronics System Co., Ltd., has entered the final commissioning stage of its 115-platform electric steering motor production line, with mass production set to begin in mid-December 2025, marking a significant advancement in the company's intelligent steering strategy.
- Technological Breakthrough: The new electric steering motor delivers torque exceeding 20 N•m and has successfully passed verification from approximately ten leading OEMs after three years of R&D, showcasing its technological excellence and readiness for commercial production, thereby reinforcing CAAS's leadership in the electric steering market.
- Market Expansion: This electric steering system combines the durability of a recirculating ball mechanism with the efficiency of electric power, making it suitable for commercial vehicles, which is expected to enhance customer demand for efficient and environmentally friendly products, thus driving the company's growth in global markets.
- Strategic Collaboration: The new production line, co-developed with Wiselink Technology, reflects the company's ongoing commitment to technological R&D, which will further promote global market opportunities for high-torque steering motors in the future.





