China Automotive Systems (NASDAQ:CAAS) announced that its subsidiary, Hubei Henglong, has won a contract to supply its column-assist electric power steering (C-EPS) system for a new South American vehicle platform.
The platform, which includes both gasoline and hybrid passenger models, is expected to see annual sales of over 300,000 units, with mass production slated for early 2028.
This contract represents a significant expansion for Henglong, which already holds a 30% market share in Brazil.
Henglong has had an established factory in the country since 2012, and the new project will upgrade local operations from mechanical to electric steering systems.
In addition to supplying C-EPS systems, Henglong will enhance its Brazilian operations with local manufacturing capabilities, engineering collaboration, and a strengthened supply chain and after-sales support structure.
The contract further solidifies Henglong’s position in the South American market and aligns with the region’s increasing demand for advanced automotive technologies, particularly in hybrid and electric vehicle segments.