China Automotive Systems Hosted Hubei Government Officials Plant Visit

WUHAN, China, March 16 /PRNewswire-Asia/ — China Automotive Systems, Inc.
(Nasdaq: CAAS), a leading power steering components and systems supplier in
China, today announced that its wholly owned subsidiary, Jingzhou Hengsheng
Automotive System Co., Ltd. (”Hengsheng”), hosted a visit of senior
government officials and welcomed the government’s policy support for the auto
industry.

The officials from the Hubei Provincial Government and the Hubei
Provincial Ministry of Technology visited Hengsheng. Established in October
2007, this CAAS subsidiary produces high-end products mainly focused to meet
the stringent quality demands of Chinese Joint Ventures and the global export
market. Equipped with state-of-the-art machine tools, assembly lines, and
testing equipment in a 200,000 square meter facility, Hengsheng has a designed
annual production capacity of 1.3 million units. As a wholly owned foreign
enterprise, Hengsheng benefits from an income tax exemption through 2010
followed by preferential tax treatment (at a 15% rate) for the following 3
years thereafter.

Mr. Qizhou Wu, China Automotive Systems’s CEO, commented, ”Hengsheng is a
good example for China’s statement for a world-class auto parts facility. With
our North American purchase order, we have entered the global marketplace. We
plan to have all our products up to global quality standards so we can sell
additional products and better penetrate the multi-billion dollar market for
power steering systems. We anticipate domestic OEMs are proactively revamping
their vehicles’ quality standards which will require higher performance key
components. We see this as our opportunity to strengthen relationships with
OEMs.”

”It was an honor for the officials from the Hubei Provincial Government
to visit and take a keen interest in our operations and plans. Hubei is a very
important auto manufacturing hub in China as it is the home of the 2nd largest
Chinese OEM, Dongfeng Motors, and the 2nd largest steel maker, Wisco. The
Hubei government has been instrumental in developing the industrial
infrastructure and upstream suppliers in Hubei province. We appreciate their
support as we continue to develop into a global player for advanced steering
technology,” Mr. Wu concluded.

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 over 1.3 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
     Tel:   +1-646-284-9409
     Email: ktheiss@hfgcg.com

SOURCE China Automotive Systems, Inc.