China Automotive Electric Power Steering (EPS) Market Research Report: Trends & Forecast (2026-2032)

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.

China Automotive Electric Power Steering Market Trend:

Shift Toward Steer-by-Wire Steering Systems

The transition toward steer-by-wire technology represents a major structural trend reshaping the automotive electric power steering market in China. Steer-by-wire systems replace the mechanical connection between the steering wheel and front wheels with electronic signals and redundant control units. This shift has accelerated alongside the rapid development of intelligent electric vehicles requiring precise electronic steering control. According to the Ministry of Industry and Information Technology, China’s industrial policy increasingly supports software-defined vehicles and intelligent chassis technologies, encouraging manufacturers to adopt electronically controlled steering architectures.

The trend has gained momentum as regulatory frameworks and industry standards begin accommodating advanced steering technologies. In 2025, China introduced the GB 17675-2025 Motor Vehicle Steering System standard, which formally incorporates steer-by-wire configurations into the national regulatory framework. This policy update allows automakers to deploy vehicles without a traditional mechanical steering linkage once safety redundancy requirements are satisfied. For instance, Chinese EV manufacturer NIO participated in establishing the national certification framework and has achieved mass-production certification and delivery of vehicles equipped with steer-by-wire technology .

Steer-by-wire adoption is structurally transforming the automotive value chain by increasing the importance of electronics, software integration, and intelligent vehicle platforms. Automakers are integrating steering systems with braking, suspension, and autonomous driving technologies to create centralized vehicle control architectures. The International Energy Agency reports that China remains the world’s largest electric vehicle market, where advanced driver-assistance systems are expanding rapidly. As autonomous and connected vehicle technologies scale, steer-by-wire systems are expected to become a foundational technology shaping long-term steering system demand.

China Automotive Electric Power Steering Market Opportunity:

Technological Advancements in Smart and Software-Defined Steering

Technological progress in smart and software-defined steering systems represents a major opportunity for new entrants in China’s automotive electric power steering ecosystem. Modern electric vehicles increasingly rely on centralized electronic architectures where steering, braking, and vehicle control are managed through software rather than purely mechanical components. The Ministry of Industry and Information Technology continues promoting intelligent connected vehicles through national policies supporting software-defined automotive platforms. These initiatives accelerate demand for advanced steering controllers, sensors, and electronic control units integrated with vehicle software systems.

The opportunity exists because China’s rapidly expanding electric vehicle sector requires steering technologies capable of supporting advanced driver assistance and autonomous driving features. According to the International Energy Agency, China accounted for the largest share of global electric vehicle sales in 2025, driven by strong domestic demand and supportive industrial policy . According to the China Association of Automobile Manufacturers, about 3.129 million passenger vehicles equipped with city navigation-assisted driving systems were sold between January and November 2025, representing roughly 15.1% of insured passenger vehicles. Additionally, Forvia Hella began series production of a new-generation steering sensor for a Chinese automaker in 2025, supporting fully electronic steer-by-wire systems.

This transition particularly benefits emerging technology firms because software-defined steering reduces reliance on traditional hydraulic engineering capabilities dominated by legacy suppliers. Instead, competitive differentiation increasingly depends on expertise in electronics, software algorithms, sensors, and data integration. Smaller companies specializing in vehicle software platforms, electronic control units, or advanced sensor technologies can therefore enter the steering ecosystem through partnerships with automakers. As intelligent vehicle architectures expand across China’s automotive sector, these technology capabilities create scalable opportunities for innovative suppliers within the evolving steering systems value chain.

China Automotive Electric Power Steering Market Challenge:

Complex Integration with Modern Vehicle Electronic Systems

The increasing complexity of integrating electric power steering with modern vehicle electronic architectures represents a major structural challenge for the automotive steering market. Modern vehicles increasingly rely on interconnected electronic control units, sensors, and software-driven platforms that manage steering, braking, and stability systems simultaneously. According to the Ministry of Industry and Information Technology, China is accelerating the development of intelligent connected vehicles that depend on highly integrated electronic systems. This technological shift requires steering components to operate seamlessly with advanced driver assistance systems, automated driving software, and centralized vehicle computing platforms.

The challenge arises because integrating steering systems with digital vehicle architectures requires complex hardware redundancy, functional safety validation, and extensive software calibration. In 2025, China introduced the GB17675-2025 Automotive Steering Systems Standard, which sets stricter technical requirements for electronic steering and steer-by-wire configurations to ensure safety and reliability. These regulations require manufacturers to implement redundant electronic pathways and rigorous safety testing procedures. Compliance with such requirements significantly increases engineering complexity, system validation timelines, and development costs for automotive suppliers.

These integration challenges materially restrict market scalability, particularly for smaller suppliers lacking advanced electronics and software capabilities. Steering system providers must coordinate with automakers, semiconductor suppliers, and software developers to ensure compatibility across vehicle platforms. According to the International Energy Agency, the rapid growth of electric vehicles and intelligent driving technologies is increasing the complexity of vehicle electronics. For example, Ford Motor Company cancelled its next-generation vehicle electronics architecture project in 2025 after facing escalating development costs and integration difficulties while attempting to build a centralized software platform. As a result, the need for integrated system validation, cybersecurity safeguards, and cross-platform compatibility can delay product launches and raise development costs across the automotive steering value chain .

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

The China Automotive Electric Power Steering market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2026–32 at the country level. Based on the analysis, the market has been further classified as;

Based on 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

The Column Assist Electric Power Steering (C-EPS) segment dominates the China Automotive Electric Power Steering Market, accounting for approximately 52% of total demand, primarily due to its widespread integration in compact passenger vehicles and entry-level electric cars. China’s passenger car segment constitutes the largest portion of the country’s automotive production, creating strong demand for cost-efficient steering technologies. C-EPS systems are widely preferred in these vehicles because they provide adequate steering assistance while maintaining lower manufacturing costs and simpler installation compared to rack-assist systems. This makes the technology particularly suitable for high-volume passenger vehicles and affordable electric vehicle platforms.

Manufacturing efficiency and cost advantages further strengthen the dominance of C-EPS technology. Column-assist steering systems integrate the electric motor directly onto the steering column, reducing component complexity and minimizing the need for additional mechanical linkages. This design enables automakers to reduce production costs while maintaining reliable steering performance for smaller vehicles. China’s large-scale automotive manufacturing ecosystem, led by companies such as BYD, Geely, and SAIC Motor, supports high-volume production of compact vehicles where C-EPS remains the most practical steering solution. For instance, Nexteer Automotive introduced High-Output Column-Assist Electric Power Steering (HO-CEPS) in 2025, expanding steering assist capacity up to 110 Nm and enabling C-EPS systems to support larger and heavier vehicles beyond traditional compact segments .

Additionally, C-EPS systems align well with China’s rapidly expanding electric vehicle segment, particularly in urban mobility vehicles and affordable EV models. The compact architecture of C-EPS reduces weight and improves energy efficiency, which is essential for maximizing battery range in electric vehicles. As China continues to promote electric mobility and affordable passenger vehicles through industrial policies and consumer incentives, automakers increasingly adopt C-EPS systems to maintain cost competitiveness. For example, China Automotive Systems secured a C-EPS project from a leading South American automaker expected to exceed 300,000 units annually, highlighting the scalability and global demand for column-assist steering systems. The combination of scalability, cost efficiency, and compatibility with high-volume passenger car production, therefore, continues to position C-EPS as the leading steering technology in China’s automotive market.

Based on Component:

• Steering Column / Rack
• Electric Motor
• Torque Sensor
• Electronic Control Unit (ECU)
• Steering Gear
• Other Components

The Steering Gear segment dominates the China Automotive Electric Power Steering Market, accounting for approximately 33% of total demand, primarily because it serves as the core mechanical interface that converts steering input into controlled wheel movement. Within EPS architecture, the steering gear integrates rack-and-pinion mechanisms with electric assist systems, ensuring accurate vehicle handling and stability. As modern vehicles increasingly adopt electronic steering and driver-assistance technologies, the steering gear remains an essential structural component connecting electronic control systems with physical steering motion.

China’s large automotive manufacturing base and expanding electric vehicle production further reinforce demand for durable steering gear assemblies. Electric vehicles and intelligent driving platforms require high-precision steering components capable of handling increased torque loads while maintaining consistent steering response. These systems must also integrate with sensors and electronic control units to support advanced steering functionalities. As a result, automakers rely on robust steering gear assemblies that can maintain performance reliability under complex operating conditions.

Industry investment in steering component manufacturing also highlights the segment’s importance. For example, Nexteer Automotive began constructing a new smart manufacturing facility in Liuzhou, China, to meet growing demand for advanced steering and motion-control technologies used in electric and intelligent vehicles . The facility is designed to expand production capacity for steering components and strengthen supply chains supporting Chinese and global OEMs. Such investments demonstrate the continued strategic importance of steering gear systems within China’s rapidly evolving automotive steering ecosystem.

Gain a Competitive Edge with Our China Automotive Electric Power Steering Market Report:

• China Automotive Electric Power Steering Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• China Automotive Electric Power Steering Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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