China Automotive Systems Wins ChangAn Auto Contract

WUHAN, Hubei, China, Sept. 2 /Xinhua-PRNewswire-FirstCall/ -- China
Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components
and systems supplier in China, today announced that its subsidiary, Jingzhou
Henglong Automotive Parts Co. ("Henglong"), has signed a supply agreement with
ChangAn Auto Co. Ltd. ("ChangAn Auto").
Beginning in February 2007, Henglong started developing prototype power
steering systems for ChangAn Auto. After more than a year of development and
testing, Henglong has successfully developed 4 different models of hydraulic
power steering systems and one model of Electronic Power Steering for ChangAn
Auto. Henglong is now a power steering system supplier to ChangAn Auto's CV6
model. It is estimated that Henglong will ship steering gears for the other 3
models in late 2008. Total shipments to ChangAn Auto for 2008 will be
approximately 30,000 total units.
Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems,
stated,
"We view the ChangAn win as an important milestone as ChangAn Group is one of
the largest auto manufacturing groups in China with a number of successful
joint ventures with global auto makers. We see this as a good opportunity for
us to break into another well established network."
According to the China Association of Automobile Manufacturers, ChangAn
Auto Co. Ltd. produced and sold around 50,000 sedans and 250,000 SUVs in 2007.
ChangAn Group has been consistently ranked as a top 5 automaker in China for
many years.
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. For more information, please visit:
http://www.caasauto.com .
About ChangAn Auto Co. Ltd.
Founded in 1862 and headquartered in Chongqing, the only municipality in
west China directly under the central government's control, ChangAn Auto Co.
Ltd. is one of the most renowned carmakers in China producing a full line of
vehicles ranging from passenger cars, SUVs, light duty trucks, mini-van, coach
buses and other commercial vehicles. ChangAn Auto's annual total production
capacity is 1 million vehicle units and 1.1 million engine units. ChangAn has
established joint ventures with international auto makers Ford, Mazda and
Suzuki in China. The joint ventures are ChangAn Suzuki Auto Corp. founded in
1993, ChangAn Ford Auto Corp. founded in 2001 and ChangAn Ford Nanjing Corp.
founded in 2004. For more information, please visit
http://www.changan.com.cn .
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, and the impact of acquisitions on its financial
performance. 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 demand for the Company's products; changes in
consumer preferences and tastes; and effectiveness of marketing; changes in
laws and regulations; fluctuations in costs of production, delays and cost
overruns related to developing and opening new production facilities; 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:

Jie Li
Chief Financial Officer
China Automotive Systems
Email: jieli@chl.com.cn

Kevin Theiss
Investor Relations
Grayling Global
Tel: +1-646-284-9409
Email: ktheiss@hfgcg.com

SOURCE China Automotive Systems, Inc.

Jie Li, Chief Financial Officer of China Automotive Systems, or
jieli@chl.com.cn; Or Kevin Theiss, Investor Relations of Grayling Global, +1-
646-284-9409, or ktheiss@hfgcg.com