China Automotive Electric Power Steering (EPS) Market Report Key Takeaways:

• The China Automotive Electric Power Steering Market size was valued at around USD 12.5 billion in 2025 and is projected to grow from USD 13.93 billion in 2026 to USD 26.71 billion by 2032, exhibiting a CAGR of 11.46% during the forecast period.
• By Type, the Column Assist Electric Power Steering (C-EPS) segment represented a significant share of about 52% in the China Automotive Electric Power Steering Market in 2026.
• By Component, the steering gear segment presented a significant share of about 33% in the China Automotive Electric Power Steering Market in 2026.
• Leading automotive electric power steering companies in China are ATS Automation Tooling Systems Inc., Delphi Automotive Systems, GKN PLC, Hitachi Automotive Systems, Hyundai Mobis Co., Infineon Technologies, JTEKT Corporation, Mando Corporation, Mitsubishi Electric Corporation, Nexteer Automotive, NSK Ltd., and Others.

Market Insights & Analysis: China Automotive Electric Power Steering Market (2026-32):

The China Automotive Electric Power Steering Market size was valued at around USD 12.5 billion in 2025 and is projected to grow from USD 13.93 billion in 2026 to USD 26.71 billion by 2032, exhibiting a CAGR of 11.46% during the forecast period, i.e., 2026-32.

China’s Automotive Electric Power Steering (EPS) market has expanded steadily as vehicle manufacturers replace conventional hydraulic steering with electronically assisted systems that improve energy efficiency and control precision. According to the China Association of Automobile Manufacturers, passenger vehicle sales in China exceeded 26 million units in 2024, making this end-user segment the largest contributor to EPS demand. Passenger cars increasingly rely on electric steering architectures because they reduce mechanical complexity and support modern vehicle electronics. As vehicle production and consumer mobility needs continue to expand across urban regions, the passenger vehicle segment remains the core demand driver for EPS systems.

Beyond passenger vehicles, commercial transportation and logistics fleets are emerging as an additional source of EPS demand. According to the International Energy Agency, the expansion of e-commerce logistics has significantly increased the need for urban delivery vehicles, particularly light commercial vans and pickups. These vehicles benefit from EPS technology because it improves maneuverability in dense city environments while reducing steering effort and maintenance requirements compared with hydraulic steering systems. As urban distribution networks expand, commercial fleet operators are increasingly adopting vehicles equipped with electronic steering to improve operational efficiency and driver comfort.

Technology adoption across advanced driver-assistance systems and intelligent vehicle platforms is also accelerating EPS integration. The China Association of Automobile Manufacturers reported that 3.129 million passenger vehicles equipped with city navigation-assisted driving systems were sold between January and November 2025, representing 15.1% of insured passenger vehicles. These automated driving functions require electronically controlled steering systems capable of adjusting vehicle direction through sensors and software algorithms. As automakers develop intelligent chassis platforms integrating steering, braking, and suspension functions, EPS technologies are becoming essential components within modern vehicle control systems.

Industry investment and technological innovation from global suppliers further reinforce the market’s long-term growth outlook. For instance, Nexteer Automotive launched its first Dual-Pinion Electric Power Steering (DPEPS) customer program in China in 2025, expanding advanced steering solutions for new vehicle platforms. Similarly, JTEKT Corporation introduced a next-generation electronic steering column control module for advanced vehicle control systems, while Hyundai Mobis strengthened its smart steering portfolio through the strategic acquisition of steering control technologies. These developments demonstrate strong industry commitment to advancing electronic steering technologies, indicating sustained demand for EPS systems as intelligent mobility and vehicle automation continue expanding across China’s automotive sector.

China Automotive Electric Power Steering Market Recent Developments:

• 2025 : ZF Group expanded its Electronic Power Steering (EPS) manufacturing capacity in Shanghai, strengthening supply for Chinese automakers. The expansion, signed with the Shanghai Anting Economic Development Center, is designed to scale production and broaden the company’s EPS product portfolio, with volume production expected by the end of 2025 to meet rising demand from EV and ADAS-enabled vehicles.
• 2025 : China Automotive Systems secured its first large-scale EPS supply contract for South American vehicle programs, marking a major international expansion. The deal will integrate the company’s electric power steering systems into overseas automotive supply chains, supporting its strategy to grow global sales and strengthen technological competitiveness in advanced steering systems.
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  China Automotive Electric Power Steering (EPS) Market Scope:

  Category	Segments
  By Type	(Column Assist Electric Power Steering (C-EPS), Pinion Assist Electric Power Steering (P-EPS), Dual Pinion Electric Power Steering (DP-EPS), Rack Assist Electric Power Steering (R-EPS), Other EPS Types),
  By Component	(Steering Column / Rack, Electric Motor, Torque Sensor, Electronic Control Unit (ECU), Steering Gear, Other Components),
  By Vehicle Type	(Passenger Cars, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)),
  By Sales Channel	(OEM (Original Equipment Manufacturer), Aftermarket)

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  China Automotive Electric Power Steering Market Driver:

  Rapid Expansion of Electric Vehicle Production in China

  China’s rapid expansion in electric vehicle (EV) production has become the most influential structural driver supporting growth in the Automotive Electric Power Steering (EPS) market. EPS systems are integral to EV architectures because they eliminate hydraulic steering components and operate entirely through electronic control, improving efficiency and vehicle integration. According to the China Association of Automobile Manufacturers, China’s automobile production reached approximately 27.7 million units during the first ten months of 2025, representing 13.2% year-on-year growth . As EV production accelerates within this expanding automotive output, the installation volume of EPS systems increases proportionally across passenger vehicles.

  This driver has strengthened significantly due to policy support and industrial planning aimed at accelerating electric mobility. The Ministry of Finance of the People's Republic of China extended the new energy vehicle purchase tax exemption through 2027, lowering consumer acquisition costs and encouraging EV adoption nationwide. At the same time, the Ministry of Industry and Information Technology continues implementing the New Energy Vehicle Industrial Development Plan (2021–2035), which promotes electrification, intelligent vehicle technologies, and domestic manufacturing expansion. These policies incentivize automakers to increase EV production volumes, thereby strengthening the structural demand for electronically controlled steering systems.

  The measurable impact of EV expansion is visible across China’s automotive supply chain and export markets. Data from the China Association of Automobile Manufacturers indicates that China exported 5.62 million vehicles during the first ten months of 2025, generating approximately USD 112.8 billion in export value. Because EPS systems are standard components in electric and modern passenger vehicles equipped with electronic control architectures, rising vehicle production directly increases EPS installation volumes. Consequently, sustained EV manufacturing growth expands the overall market size by increasing the physical volume of steering systems required across domestic and international automotive production.