China Automotive Systems, Inc. (NASDAQ: CAAS) began volume shipment of electric power steering systems to a global automaker's European division from its factory in Wuhan, China, according to a company statement.

The EPS steering model will be featured in two new vehicle models in Europe, with annual sales volume expected to reach approximately 300,000 units. Additional vehicle projects are planned to follow the initial shipment.

The development process spanned two years from project initiation to volume production. The company completed 66 DV/PV tests, with 65 approved by the customer on the first attempt, and implemented 11 major software upgrades during the project timeline.

The production utilizes eight manufacturing technologies, including Manufacturing Execution System integration with Automated Guided Vehicles, computer vision Poka-Yoke, and autonomous robotic inspection systems.

"We are proud of entering another major OEM's supply chain as we make strides in broadening our customer base and geographic reach," said Qizhou Wu, Chief Executive Officer of CAAS.

China Automotive Systems operates through 16 Sino-foreign joint ventures and wholly owned subsidiaries based in Hubei Province, China. The company maintains annual production capacity of over 8 million sets of steering gears, columns and steering hoses across four power steering series.

Current customers include China FAW Group, Dongfeng Auto Group, BYD Auto Company, Beiqi Foton Motor and Chery Automobile in China, along with Stellantis N.V. and Ford Motor Company in North America.