Hesai to Double Lidar Production Amid Industry Shakeout
▼ Summary
– Hesai plans to double its annual lidar production capacity from 2 million to 4 million units in 2026, citing accelerating demand in automotive and robotics.
– The company’s expansion follows the Chapter 11 bankruptcy of U.S. rival Luminar, whose failure was partly due to cost pressure from Chinese competitors and collapsed automotive deals.
– Hesai’s automotive business is growing, with its sensors in 25% of new electric cars in China and expectations for 3-6 sensors per vehicle, supported by 24 customers and 4 million orders for its ATX sensor.
– The company is also targeting the robotics market, showcasing products like a robotic lawnmower and dog, and has supply deals with autonomous vehicle firms like Pony AI and Baidu.
– Hesai has significantly reduced lidar sensor costs by 99.5% over eight years and is publicly listed, despite facing U.S. government allegations of ties to China’s military, which it disputes.
In a bold move to solidify its position, Chinese lidar manufacturer Hesai has announced a major expansion of its production capabilities. The company plans to double its annual output, aiming to reach four million units this year. This aggressive growth strategy arrives during a period of significant consolidation within the global lidar industry, highlighted by the recent bankruptcy filing of a key American competitor. The decision is driven by what Hesai describes as rapidly accelerating demand from both the automotive and robotics sectors, positioning the firm to capture a larger share of the international market.
This push for greater market dominance follows closely on the heels of Luminar Technologies filing for Chapter 11 bankruptcy protection. The U.S.-based firm, once an industry leader, does not anticipate continuing operations and is seeking a buyer for its lidar business. Hesai’s contrasting trajectory is notable, having secured substantial funding in recent years and achieving listings on both the Nasdaq and Hong Kong stock exchanges. This financial strength persists even as the company contends with allegations from the U.S. government regarding ties to China’s military, claims which Hesai actively disputes.
At the recent Consumer Electronics Show, company representatives pointed to robust automotive adoption as a core driver for the production increase. Hesai reports that its lidar sensors are now featured in a quarter of all new electric vehicles sold in China. The firm anticipates this integration will deepen, with many new Chinese car models expected to carry between three and six sensors each. Hesai boasts 24 automotive clients, including a major European manufacturer, and has already secured four million orders for its latest ATX lidar sensor.
The automotive landscape has proven far less stable for lidar makers outside of China, a factor that contributed to Luminar’s difficulties. Despite securing initial agreements with brands like Volvo, Polestar, and Mercedes-Benz, those partnerships ultimately unraveled. For instance, Volvo’s plan to purchase 1.1 million sensors was canceled due to program delays and cost concerns, resulting in the Swedish automaker buying only a fraction of that amount.
While the robotics market for lidar is still developing, companies like Hesai see immense potential. Other industry players share this optimism; San Francisco-based Ouster, which consolidated with Velodyne in 2023, estimates the robotics opportunity could be worth $14 billion. This encompasses applications ranging from humanoid robots and delivery drones to military systems. At CES, Hesai demonstrated its JT series sensors in a robotic lawnmower and a robotic dog, and hinted at involvement in humanoid robotics projects. The company also supplies sensors to several prominent autonomous vehicle developers, including Pony AI, Motional, WeRide, and Baidu.
A critical element of Hesai’s competitive edge has been its impact on pricing. The company claims to have driven down the cost of lidar sensors by a staggering 99.5% over just eight years. This intense price pressure is cited in Luminar’s own bankruptcy documents as a primary challenge, noting that lower-cost competitors based in China made it exceedingly difficult to build a profitable, self-sustaining business model.
(Source: TechCrunch)
