CAAS AP04 EPS Platform Meets ASPICE 4.0 CL2

China Automotive Systems EPS Platform Validation

China Automotive Systems, Inc. announced on Monday, Oct. 5, 2026, that its wholly owned subsidiary, Hubei Henglong Automotive System Group, achieved ASPICE 4.0 Capability Level 2. The assessment was jointly conducted by a European automaker and an international third-party agency, UL, according to a PR Newswire M&A report. The project successfully met the ASPICE 4.0 CL2 standards across end-to-end research and development capabilities, marking a milestone in the management of automotive software and hardware engineering.

AP04 Platform Readiness for Europe

The electric power steering program developed on the AP04 platform was included in the assessment and achieved ASPICE CL2 certification. This result reinforces the program's readiness for scheduled mass production aimed at European markets by the end of 2026. The evaluation covered 19 core process areas, encompassing systems engineering, software engineering, hardware engineering, project management, and associated supporting processes. ASPICE CL2 functions as a benchmark for measuring R&D process control in the automotive electronics sector, where leading European automakers enforce strict entry standards for supply chain R&D processes, quality systems, and process control.

Domestic R-EPS Platform Expansion

In addition to the European joint assessment, Henglong met all R&D testing criteria set by a leading China-based automaker, securing development rights for the client's R-EPS platform-based vehicle models. These models represent the client's mainstream offerings, highlighting the company's technical capabilities in advanced chassis platforms. An R-EPS platform utilizes a rack-type electric power steering system that replaces traditional hydraulic steering with an integrated electric motor and mechanical reduction system, such as a ball screw or belt, attached directly to the steering rack. This development occurs as China's trade rebalancing pressure mounts across domestic manufacturing sectors.

Executive Commentary and Operations

Mr. Qizhou Wu, chief executive officer of CAAS, stated that achieving ASPICE 4.0 CL2 validated by a leading European OEM and UL demonstrates that engineering processes are disciplined, repeatable, and globally competitive. Wu noted that these capabilities strengthen readiness for scheduled mass production of EPS products for European markets by the end of 2026, while providing a scalable foundation for future platform programs with global customers. The parent company is based in Hubei Province, People's Republic of China, and operates through 16 Sino-foreign joint ventures and wholly owned subsidiaries.

Manufacturing Capacity, Risk Factors and Future Outlook

The company maintains an annual production capacity of over 8 million sets of steering gears, columns, and steering hoses across four separate series of power steering. The customer base includes domestic auto manufacturers such as China FAW Group Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd., and Chery Automobile Co., Ltd., alongside Stellantis N.V. and Ford Motor Company in North America. Operations are subject to various risk factors detailed in reports filed with the Securities and Exchange Commission, including those in the annual report on Form 20-F filed on April 22, 2026, alongside related updates concerning market data and technology infrastructure. Forward-looking statements represent estimates and assumptions only as of the date of the press release, and actual results may differ materially due to certain risks and uncertainties. Any factors beyond company control could have an adverse effect on the overall business environment, cause uncertainties in the regions where business is conducted, and impact financial condition and results of operations. A prolonged disruption or any further unforeseen delay in operations of the manufacturing, delivery, and assembly process within any production facilities could continue to result in delays in the shipment of products to customers, increased costs, and reduced revenue. The company expressly disclaims any duty to provide updates to any forward-looking statements made in the press release, whether as a result of new information, future events, or otherwise. Further inquiries can be directed to Chief Financial Officer Jie Li or investor relations contact Kevin Theiss at Awaken Advisors.