Investor Presentation Gabelli Auto Aftermarket Conference Nov 3 2009

1. Investor Presentation Gabelli Auto Aftermarket Conference Nov 3 2009 Power-steering Chinese Automotive Industry

2. Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the company's operations and financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time.

3. Introduction to CAAS Who We Are Key Milestones 1993 – Established Jiulong to produce Integral Power Steering Gear in Heavy-duty vehicles 1997 – Established Henglong to produce Rack and Pinion Steering Gear in passenger vehicles 2001 – Signed licensing agreement with Bishop Steering for automotive power steering valve technology 2002 – Established JV Zhejiang to produce steering pump and JV Shengyang with Brilliance Auto 2003 – Signed licensing agreement with NamYang 2004 – Listed on NASDAQ Small Cap – Selected as Exclusive Supplier for Steering Pumps for GM Joint Venture in China 2005 – Signed Licensing Agreement with Korea Delphi 2006 – Formed JV with Chery Auto – Established JV to produce Electric Power Steering (EPS) 2007 – Launched Detroit office to develop NA business – Won supplier contract from FAW-Volkswagen – 2008 – Won first supplier contact with global N.American OEM – Won supplier contracts with ChangAn Auto and Dongfeng Peugeot Citroen – Sold record 1.3 million units China Automotive Systems is the largest supplier of power steering components and systems in China. Its subsidiary groups offer a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. Investment Highlights • #1 market share in commercial vehicle • #2 market share in passenger vehicle • Key supplier to many top 10 auto makers • Increasing number of supplier contracts with Sino-foreign JVs • Strong R&D, high quality and low cost • Nearly 100% sales to China domestic market

4. Our Products • The company’s product offering encompasses a full range of auto parts which are incorporated into steering systems for both passenger automobiles and commercial vehicles. • The company currently offersfour separate series of power steering sets and over 300 models of power steering and manual steering sets, steering columns, steering oil pumps, and steering hoses. Steering Column Steering Pumps Rack & Pinion Power Steering Gears Steering Hoses

5. Fast Growing Chinese Auto Market • Beginning in 2009, China becomes the world’s largest auto nation • Auto penetration in China is currently at 5% compared with the 60% penetration in US, Europe, and Japan • Rising demand from low-to-mid income families whose purchasing power has increased with falling car prices • In 2008, China auto parts sales increased by 32% YoY, compared with 40% in 2007. • Auto part exports were $35.01bn in 2008, accounting 70% of total value of auto exports. (CAAM) China domestic auto market (million units) 2001-2008 CAGR 20% • Source: CAAM • 70 million total vehicles as of Aug 20091 • (1)Source: China, Ministry of Public Security. (2) Investment Report of China Auto & Auto Parts Industry, 2000-2008 • (3) China auto Parts Industry Report 2007-2008, (4)AlixPartners Study Feb ’08; Analysis of China Auto Parts Market 2008-2009

6. Leading Competitive Position CAAS is the largest supplier of power steering components and systems in China China has over 100 automakers. There are only 30 power steering system suppliers in China. Safety related components = High barrier of entry Major competitors, Shanghai ZF and FKS, are captive suppliers to specific JV automakers: Volkswagen, GM, Toyota, Honda etc. Leaders / Market % 1) CAAS Henglong: 13% 2) Yubei: 11% 3) ZF Shanghai: 10% 4) FAW: 9% 5) Zhej. Wanda: 7% Source: Company estimates, 2008 CAAS is able to innovate and introduce new products and manage costs much more nimbly than its state-owned or foreign JV competitors. 6

7. Competitive Strength CAAS is well positioned to take advantage of the fast growing China auto parts market opportunity • 200+ engineers; 3 technology and R&D centers • 27 Chinese patents; 4 trademarks • Partner with Bishop Steering Technology, Namyang, Korea Delphi Automotive Systems and Tsinghua University Strong Technology and R&D Capabilities • Independent supplier; • Quick turnaround on new platform development CAAS 3 months vs Competitors 6-9 months • Approximately 30 sedan makers in China have produced nearly 70 sedan models; Chinese OEMs are demanding fast product cycles Rapid Product Introduction • Offers the most comprehensive range of steering systems in both passenger and commercial vehicles • 4 separate series of power steering sets and over 300 various models • Most domestic competitors have less than half of CAAS product range Breadth of Product Portfolio • Labor cost control • Raw material cost control • Inventory management • Manufacturing expense control Cost Control

8. Solution: Strong Cost Management Cost pressures will continue as the ASPs of autos decline in China Only suppliers with effective cost control measures can continue to maintain margins • CAAS’ Cost Management Measurement • Continued technological innovations • Reduce overall manufacturing and processing cost developed through in-house R&D advancements • Reduce the cost of raw materials • Volume purchase of major raw materials through a bidding process • Optimize product design to reduce the raw material wastage in the process of production • Reduce manufacturing expenses • Improve productivity of current labor hours through more efficient use of the new equipment (Over USD 20M spent on high grade equipment in the past 3 years) • Set “targets” to controlmanufacturing overhead

9. Main Customers • More than 50 customers • Revenue contribution from Passenger vehicle accounted 66% in 2008 • None of customers accounts for more than 20% of total revenue • Signature western brands: FAW-Volkswagen, Dongfeng Peugeot, GM Wuling Driving Force: passenger vehicle products Unit millions * Source: company analysis FY 2008

10. 2008 Passenger Vehicle summary Market share by brand origin in 2008 Decelerating growth, 6.8M cars sold, up 7.3% EU-US • Market leader VW growth slowed to 12.5% • Runner-up GM unit sales increased by 6.1% • Peugeot declined 6.2% YoY JPN-KRN • FAW Toyota unit sales up by 17%YoY • Hyundai posted a strong 27.4%YoY growth • Nissan demonstrated over 20% YoY growth Chinese • Home-grown brands occupied 26%market • 2008 is a transition year for Chinese brands • Chery, Geely unit sales growth slowed • Winner: BYD grew 77% * Source: CAAM, China Daily, GM.com, Gasgoo.com

11. 2008 Commercial Vehicle summary Post- Euro III Standards • Overall demand growth slowed: 14.1% YoY growth • Nearly 477,000 heavy trucks sold and 943,516 light duty truck sold • Heavy and medium duty growth slowed, but light truck continue to climb • Futon has 29% of light duty truck market and 15% of total truck market in China • Local brands dominated 90% heavy duty market. Sinotruk Top 5 globally • Sales by units • 2008 sales Breakdown truck unit sales, by type 11 * Source: CAAM, company analysis

12. Government Policies in 09 • Stimulus packages • Since Jan, tax reduction to 5% for 1.6L engine vehicles • Subsidies to Agricultural market – RMB 5 billion • Since Aug, subsidies to replace older, polluting vehicles with National IV • NDRC raised fuel price in Sept • Gasoline up by RMB 0.22 per liter • Diesel increased by RMB 0.26 per liter • Further financial support to intermediates • CBRC allows auto lease and auto financing companies to issue bonds • More stringent emission standard by SEPA • Nationwide implementation of vehicle emission certificate since Oct • “Yellow sticker” (non-compliance) vehicles become regulation targets • Accepted WTO ruling to abolish 25% tax on some imported auto parts • Revitalizes CKD market

13. 2009 9M Highlights PV prod 7.1m and 37% YoY increase PV sales 7.2m and 41% YoY increase Price cut 0.6% Vs 1.3% in 08 and 4% in 07 “Inside Out” Mini and small car sales in Coastal, Central, West markets up 15%, 28% and 36% YoY, respectively “Size Matters” Small car (< 1.6 liter) – 5 m units sales, 60% YoY increase, nearly 70% total PV sales “Home Run” National brands sold 3 m units and secured #1 mkt share National brands dominate commercial vehicle market – 2.4 m units sales, up 17% YoY and truck market recovery continues 3 tier markets 13 * Source: CAAM, Four-in

14. Accelerate international expansion through direct sales and partnerships Continue to develop relationships with top tier international automotive OEMs and component manufacturers Search for good acquisition targets with solid distribution channels Build channel relationships to capture aftermarket opportunity Establish international office to pursue business development and R&D Grow market share in China by partnering with fast growing OEMs Penetrate existing clients’ different lines of products Approach low margin foreign brands who import parts Focus on continuous improvement in production efficiency and quality Expand production to meet growing demand Introduce new products through R&D Growth Strategy International Market Domestic Market Main goal: developing relationships and winning contracts in US and Europe Benefits of Electric Power Steering: fuel efficient, environmental friendly and higher margin

15. Robust Organic Revenue Growth • Top line grew 370% over the last 7 years – all organic growth • CAGR 21% between 2002 and 2008 • Revenue growth continued in 2008 despite the economic downturn YoY 22% USD millions USD millions FY04-08 CAGR 21%

16. Driving Bottom-line Growth USD millions USD millions YoY 22% YoY 39%

17. Q2 2009 Summary 17

18. Balance Sheet ($ in thousands) 06/30/2009 12/31/2008 Cash $39,555 $37,113 Accounts and Notes Receivable 96,425 121,466 Inventories 26,572 26,754 Property and Equipment, Net 51,979 56,117 Total Assets $263,608 $231,047 Accounts and Notes Payable $78,913 $59,246 Bank Loan 8,782 7,316 Minority Interest 24,188 23,223 Total Liabilities $149,840 $126,494 Total Shareholders Equity $104,553 $113,768 Free-Cash-Flow in the first half of 2009: USD 8 Million

19. Investment Highlights China is the world’s largest car market Fast growing China auto parts industry High barrier of entry to the safety related components Leading market share Diversified customer base Key supplier to Chinese home-grown auto makers High quality products, strong R&D and competitive pricing Well positioned for potential export opportunities 19

20. Thank You! investors@caasauto.com www.caasauto.com Power-steering Chinese Automotive Industry