China Automotive Systems Receives Orders From Dongfeng Peugeot Citroen on New Car Model

WUHAN, Hubei, China, October 14, 2008: China Automotive Systems, Inc. a leading power steering components and systems supplier in China, today announced that its subsidiary, Jingzhou Henglong Automotive Parts Co. ("Henglong"), has received orders from Dongfeng Peugeot Citroen Automobile Company Ltd. ("DPCA") for power steering gears for the Dongfeng Elysee.

Henglong started development of three new power steering gears for DPCA in 2005. These three models are Peugeot 206, Elysee R23 and Picasso N68. Subsequently, all models have passed the French UTAC safety test, road tests and inspections. In July 2008, Henglong won the supply contract on Peugeot 206 and had begun commercial production.

Mr. Qizhou Wu, Chief Executive Officer of China Automotive Systems, stated, "After winning the supply contract on Peugeot 206 model in July, we are on track to enter the Elysee model. We are excited to establish ourselves as a key component supplier to DPCA, another important European manufacturer in China, and they are now 100% replacing imported power steering gears on both models with our products. The acceptance of these new advanced power steering gears is further evidence of our ability to meet global standards for critical safety-related products and help OEMs to reduce key components costs. In addition to supplying to our Chinese customers, we are targeting other sino-foreign joint ventures and markets outside China as growth vehicles."