China Automotive Systems Posts 34.7% Growth via Stellantis, Signs $100M R-EPS Deal
China Automotive Systems posted 34.7% growth in Brazil and 15.3% in North America via the Stellantis network, driving 17.6% net sales growth and boosting gross margins to 19%. A European OEM R-EPS contract will add over $100 million in sales from 2027, reinforcing Stellantis’s electric power steering supply pipeline.
1. Sales Growth via Stellantis Network
China Automotive Systems achieved 17.6% net sales growth in 2025, driven by a 25.5% surge in electric power steering demand. The Stellantis worldwide network propelled a 34.7% sales increase in Brazil and a 15.3% rise in North American revenue, highlighting the supplier’s key role.
2. Margin Expansion and R&D Investment
Full-year gross margins expanded to 19% thanks to a shift toward higher-margin advanced steering systems and lower material costs. R&D spending jumped 63% to $45.1 million to accelerate development of L2+ assisted driving technologies and introduce mass-market Active Rear-Wheel Steering for new energy vehicles.
3. European OEM Contract Strengthens Pipeline
A major European OEM contract for R-EPS products is expected to generate over $100 million in annual sales from 2027, securing advanced steering solutions for Stellantis’s electric and commercial vehicle lines and bolstering its long-term supply pipeline.