China Automotive Systems Sees 17.6% Sales Growth, $45.1M R&D Rise and $100M OEM Deal
China Automotive Systems posted 17.6% net sales growth in 2025, driven by a 25.5% surge in EPS demand and a 34.7% sales gain in Brazil through the Stellantis network. R&D rose 63% to $45.1 million, and a European OEM R-EPS contract promises over $100 million in annual sales by 2027.
1. Record EPS-Driven Sales Growth
China Automotive Systems achieved 17.6% net sales growth in 2025, propelled by a 25.5% surge in electric power steering demand and a 10.9% increase in Chinese commercial vehicle sales.
2. Margin Expansion and Cash Flow Surge
Full-year gross margin expanded to 19% due to a favorable product mix and lower material costs, while operating cash flow jumped to $111.3 million from $9.8 million, yielding a net cash position of $169.7 million.
3. Global Network-Driven Expansion
International sales climbed 34.7% in Brazil and 15.3% in North America via the Stellantis worldwide network, and a Malaysian joint venture with KYB/UMW established a regional manufacturing hub for Asia.
4. Strategic Deals and Future Outlook
R&D investment rose 63% to $45.1 million to accelerate transition to L2+ assisted driving, and a European OEM R-EPS deal is set to generate over $100 million in annual sales by 2027 supporting a $810 million 2026 revenue target.