Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 10

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 10
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 to grow our
business. The location of future operations will depend on the needs of the business, which will be determined without regard to our
jurisdiction of incorporation.

Q: Will CAAS Cayman be treated differently from the Company for U.S. federal income tax purposes?

A:After the Redomicile Merger, CAAS Cayman, as successor to
the Company, will continue to be treated as a U.S. corporation for U.S. federal income tax purposes. Accordingly, CAAS Cayman will continue
to be subject to U.S. federal income taxes, and dividends paid by CAAS Cayman to its non-U.S. stockholders will continue to be subject
to U.S. withholding taxes, as if it were incorporated in Delaware.

Q: Is the Redomicile Merger taxable to me?

A:We intend the Redomicile Merger to qualify as a reorganization
for U.S. federal income tax purposes. Assuming the Redomicile Merger qualifies as a reorganization, a U.S. Holder (as defined in “Proposal
One — The Merger Proposal — Taxation — United States Taxation”) will not recognize any gain or
loss for U.S. federal income tax purposes upon receipt of CAAS Cayman ordinary shares in the Redomicile Merger. A U.S. Holder will have
an adjusted tax basis in the CAAS Cayman ordinary shares received in the Redomicile Merger equal to the adjusted tax basis of the Company
common stock surrendered by such U.S. Holder in the Redomicile Merger. The holding period for CAAS Cayman ordinary shares received in
the Redomicile Merger will include the holding period for the Company common stock surrendered therefor. Please see the section entitled
“Proposal One — The Merger Proposal — Taxation — United States Taxation”.

THE TAX TREATMENT OF THE REDOMICILE MERGER UNDER STATE OR LOCAL LAW
WILL DEPEND ON THE JURISDICTION. WE URGE YOU TO CONSULT YOUR OWN TAX ADVISOR PRIOR TO CONSENTING REGARDING THE PARTICULAR TAX CONSEQUENCES
OF THE REDOMICILE MERGER TO YOU.

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Q: Has the U.S. Internal Revenue Service rendered a ruling on any aspects of the Redomicile Merger?

A: No ruling has been requested from the U.S. Internal Revenue Service
(the “IRS”) in connection with the Redomicile Merger.

Q: When