CAAS Introduces Rear-Wheel Active Steering Technology to Upper Mass-Market EVs in China

Rhea-AI Summary

China Automotive Systems (Nasdaq: CAAS) announced on Oct 21, 2025 that subsidiary Jingzhou Henglong launched an active rear-wheel steering system for upper mass-market new energy vehicles priced near RMB 200,000. The system uses a ball-screw-and-nut actuator plus a control unit that integrates vehicle speed and steering-angle signals, with two independent motors to adjust left/right rear-wheel angles.

Functionally, it steers rear wheels opposite to the front below 60 km/h to reduce turning radius and in the same direction above 60 km/h to improve high-speed stability. Jingzhou Henglong has a dedicated production line, developed systems for multiple OEM models, delivered several customer testing samples, and demonstrated prototypes at the 2025 Shanghai Auto Show.

Positive

• Targeting upper mass-market EVs priced near RMB 200,000
• System operates with dual independent motors for left/right rear-wheel control
• Dedicated production line established for active rear-wheel steering
• Delivered several customer testing samples to OEMs
• Prototype demonstrations at the 2025 Shanghai Auto Show

Negative

• Commercial scale and production volumes not disclosed; only testing samples reported
• No revenue, shipment timetable, or customer purchase orders specified

Insights

Automotive Systems Strategist

CAAS is commercializing rear-wheel active steering for upper mass-market EVs, expanding ADAS product reach and OEM engagement.

CAAS's subsidiary Jingzhou Henglong launched an active rear-wheel steering system that uses a ball screw and nut driven by motors and a control unit integrating vehicle speed and steering angle. The system shifts rear-wheel behavior at a 60% speed breakpoint: opposite-phase steering below 60% (reducing turning radius) and same-phase steering above 60% (increasing high-speed stability). The release notes a dedicated production line, multiple OEM systems developed, and delivery of customer testing samples.

Dependencies and risks are clear from the disclosed facts: broader commercial impact depends on OEM adoption of the system for Chinese domestic new energy vehicles near RMB 200,000, and on conversion from testing samples to production contracts. The company highlights dual independent motors for left/right rear-wheel control and demonstrations at the 2025 Shanghai Auto Show, which support engineering readiness but do not by themselves confirm volume uptake or revenue.

Watch for three concrete milestones over the next 6–18 months: formal production orders from named OEMs, transition of customer testing samples to production deliveries, and scale-up metrics from the dedicated production line. The announcement therefore indicates a positive commercial step within CAAS's ADAS portfolio while leaving revenue and adoption timing unconfirmed; treat this as an expansion of capability and market access rather than a concluded sales outcome.

WUHAN, China, Oct. 21, 2025 /PRNewswire/ -- China Automotive Systems, Inc. (Nasdaq: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that with the rapid growth of automotive technological innovation, CAAS' subsidiary, Jingzhou Henglong Automobile Parts Manufacturing Co., Ltd. ("Jingzhou Henglong"), has launched its active rear-wheel steering for a superior driving experience. Once only reserved for luxury cars, CAAS' advanced steering is now entering the upper mass-market vehicle market with Chinese domestic new energy vehicles near the RMB 200,000 purchase price actively adopting this advanced technology.

The core of the Rear Active Steering system is a ball screw and nut mechanism. A control unit integrates signals such as vehicle speed and steering wheel angle to direct the motor to drive the nut, which in turn drives the screw axially, thereby pushing the steering rod to steer the rear wheels. One advantage lies in the ability to adapt steering strategies to different vehicle speeds.

Low-Speed Scenario: At speeds below 60 km/h, the rear wheels steer in the opposite direction of the front wheels, creating an effect similar to shortening the wheelbase. This effectively reduces the turning radius.

High-Speed Scenario: When the vehicle's speed exceeds 60 km/h, the rear wheels deflect in the same direction as the front wheels, creating a virtual wheelbase extension. This significantly improves vehicle stability and handling precision during high-speed cornering and lane changes, mitigating the risk of drifting.

Jingzhou Henglong's active rear-wheel steering system boasts a dedicated production line and has developed systems for multiple OEM models, offering unique features such as flexible steering and vehicle stability.

At the 2025 Shanghai Auto Show, a number of Jingzhou Henglong's cutting-edge technologies were demonstrated through dynamic demonstrations of complete prototype vehicles, showcasing their strength in performance and reliability, attracting high attention from the industry and establishing deeper cooperative relationships with mainstream OEMs.

Mr. Qizhou Wu, the Chief Executive Officer of CAAS, commented, "China has evolved into the world's largest electric vehicle (EV) market, with EVs accounting for approximately 50% of all new automobile sales. This steering system adds to our ADAS capabilities in our product portfolio. Compared to conventional active rear-wheel steering systems, our innovative system utilizes two independent motors to control the left and right rear wheels, enabling precise and independent adjustment of the rear wheel steering angle. We have already delivered several customer testing samples and continue to conduct in-depth research and exploration in cutting-edge technologies."

About China Automotive Systems, Inc.

Based in Hubei Province, the 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 its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 8 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading 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. in China, and Stellantis N.V. and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict, and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

For further information, please contact:

Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
jieli@chl.com.cn 

Kevin Theiss
Awaken Advisors
Tel: +1-212-510-8922
Kevin@awakenlab.com

View original content:https://www.prnewswire.com/news-releases/caas-introduces-rear-wheel-active-steering-technology-to-upper-mass-market-evs-in-china-302589890.html

SOURCE China Automotive Systems, Inc.

FAQ

What did CAAS (NASDAQ: CAAS) announce on October 21, 2025 about rear-wheel steering?

CAAS said subsidiary Jingzhou Henglong launched an active rear-wheel steering system targeted at upper mass-market EVs priced near RMB 200,000.

How does CAAS's rear-wheel steering system behave at different speeds for CAAS (CAAS)?

Below 60 km/h rear wheels steer opposite front wheels to reduce turning radius; above 60 km/h they steer with front wheels to improve high-speed stability.

Has CAAS delivered the active rear-wheel steering to customers as of Oct 21, 2025?

CAAS reported it has delivered several customer testing samples and developed systems for multiple OEM models.

Will CAAS produce the rear-wheel steering at scale?

The company reported a dedicated production line, but did not disclose production volumes or shipment dates.

What technical architecture does CAAS use for its rear active steering system?

The system uses a ball screw and nut actuator driven by a motor and a control unit integrating speed and steering-angle signals, with two independent motors for left and right rear wheels.