China Automotive Systems Recognized as One of the Best Enterprises

- Chairman Hanlin Chen Chosen as One of the Best 10 Entrepreneurs -

WUHAN, Hubei, China, Jan. 12 /PRNewswire-Asia-FirstCall/ -- China
Automotive Systems, Inc. (Nasdaq: CAAS), a leading power steering components
and systems supplier in China, today announced that China Automotive Systems
was identified as one of the 100 "Best Enterprises" and Mr. Hanlin Chen was
named one of the 10 "Best Entrepreneurs" by Jinzhou City at a recent ceremony
in recognition of the Company's growth, rising market share and its ability to
win contracts with large domestic and global customers.
These awards acknowledge the Company's achievements and contributions to
Jinzhou City. Between the 2005 and 2007 years, China Automotive Systems
achieved 110% sales growth with a faster 167% increase in net income. China
Automotive Systems has announced milestones which will help sustain the
Company's growth. First, the Company has advanced its design, manufacturing
and quality control proficiency to develop world-class products. This
achievement resulted in its first ever purchase order from a global automotive
manufacturer headquartered in North America to supply power steering gears to
this automotive manufacturer. Second, the Company shipped its first power
steering gears to the Dongfeng Peugeot Citroen Automobile Company Ltd.
("DPCA")
for use in DPCA-manufactured cars. Additionally, China Automotive Systems is
shipping product to another new client captured in 2008, ChangAn Auto Co.
Ltd.,
one of China's most distinguished carmakers in China producing a full line of
vehicles ranging from passenger cars, SUVs, light duty trucks, mini-vans,
coach buses and other commercial vehicles.
Mr. Hanlin Chen, Chairman, commented, "Through our success at China
Automotive Systems we have built a leading firm in our industry. We are now
leveraging our success in China to penetrate the global markets. Although
2008 was a difficult year for the automotive industry with slower growth, we
managed to continue our expansion and increase our market share. The
automotive industry has been declared one of the key industries in China and
we expect the Chinese government support and economic stimulus package will
help generate a recovery in 2009."
The Chinese government has enacted policies to help stimulate the economy
with a 4 trillion yuan ($586 billion) package. Proposals to enhance
automobile demand include tax incentives for new purchases and providing
rewards to swap older cars for new cars.
Both China Automotive Systems' and Mr. Chen's contributions to
revitalizing Jinzhou City were acknowledged. Mr. Chen was the first of the 10
Best Entrepreneurs to receive a medal and a trophy. China Automotive Systems
has improved the working environment in Jinzhou City through greater direct
employment, as well as helping to build local suppliers and businesses.
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., Dongfeng 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, 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

Stacey Dimakakos
Financial Media Relations
Grayling Global
Tel: +1-646-284-9417
Email: sdimakakos@hfgcg.com

SOURCE China Automotive Systems, Inc.

Jie Li, Chief Financial Officer of China Automotive Systems, jieli@chl.com.cn;
Kevin Theiss, Investor Relations of Grayling Global, +1-646- 284-9409, or
ktheiss@hfgcg.com; Stacey Dimakakos, Financial Media Relations of Grayling
Global, +1-646-284-9417, or sdimakakos@hfgcg.com