CAAS has shipped around 120K steering units for the different electric vehicle models and expects the tally to reach 140K by the end of 2020.

The leading supplier of power steering components in China is improving its sales as it expects the year to end at 140,000 sales of its steering units. China Automotive Systems, Inc. (CAAS) stock has spiked today following increased sales of steering units and improved future outlook.

CAAS stock is trading at its highest since November 2017. Shares of China Automotive Systems have almost doubled in today’s trading session soaring up to 100%.

The stock kicked off the day at $7.50 up from the prior close of $3.83. CAAS is trading in a day’s range of $5.72 – $7.75. The trading volume is high just above 26 million compared to the average volume of 110K.

As we write this at 10:13 A.M. EDT, CAAS was trading at $6.52 soaring by 70.12%.

The company shipped almost 120,000 units from its electric power steering (EPS) products so far in 2020. CAAS has supplied its steering products to various electric vehicles across China.

The company is continuing to provide advanced steering products to the largest automobile manufacturers in China. The increasing EV market in China has escalated the demand for steering products. CAAS is taking this opportunity to make its mark by meeting their high requirements for excellent performance and quality.

The Chairman of CAAS, Hanlin Chen stated:

“We have shipped a large number of our EPS steering products to Great Wall Motors for their new EV model in 2020, and will continue to ship to them in 2021.”

Based on the sales momentum, the company expects that steering sales will reach 140,000 by the end of this year. In addition, Chen projected these sales to incline to 200,000 units in 2021.

The EV market is expanding rapidly and with more than 144,000 EV units sold in October 2020 YoY, the forecasted sales of CAAS are anticpated to be achieved. The Chinese government expects the EV car market to increase by 25% of all new cars by 2025.

The sales of CAAS’s advanced EPS products to the leading EV firms in China reflect the sales of state-of-the-art hydraulic products to the largest Chinese vehicle OEMs. These sales also include the global Tier-1 vehicle OEMs which the company supplies in North and South America.

Some of the leading Chinese EV OEMs consumers of CAAS’s EPS products include Great Wall Motors, Beijing Auto, Chery Automobile, JAC Motors, Dongfeng Auto, and Hozon Auto. All these firms are some of the top and emerging automakers that rely on China Automotive System’s steering components.

China Automotive Systems, Inc. (CAAS) claims that they have the potential to become a major growth channel in EPS products over the next few years. The company expects to capture the majority of the EV market.