Shanghai-based Hesai Group, a leading producer of lidar sensors crucial for self-driving technology, is eyeing expansion into Europe as it rides the wave of increasing adoption and falling costs of its components.
David Li Yifan, co-founder and CEO of Hesai, revealed the company’s plans to establish plants outside mainland China, with a focus on Europe, to leverage the evolving landscape of the global automotive industry. While specifics of the overseas investment remain undisclosed, Li emphasized the company’s long-term vision for development beyond China.
Lidar sensors, which utilize laser beams to map surrounding objects with precision, are integral to the advancement of autonomous driving technology. Hesai, whose clientele includes major players like Li Auto and Geely, is at the forefront of this transformative technology.
Hesai’s latest product release, based on its ATX technology, promises enhanced capabilities for advanced driver assistance systems, boasting a longer detection range, higher resolution, and a wider field of view. The ATX system’s real-time identification of environmental conditions such as rain and fog sets a new standard in lidar technology, filtering out over 99% of environmental noise.
Li expressed confidence in the impact of ATX on lidar adoption globally, emphasizing Hesai’s commitment to designing products tailored for the international market while ensuring affordability.
Once dismissed by Tesla’s Elon Musk as impractical due to high production costs, lidar technology has experienced a surge in demand, especially in China where it is viewed as essential for autonomous vehicle development. Hesai’s proactive approach to reducing costs has contributed to this growth, with the price of lidar sensors dropping significantly in recent years.
The increasing demand for lidar sensors in China is evident, with over 440,000 electric vehicles equipped with lidar sensors sold last year, representing 10.4% of total EV sales. This figure is projected to rise to 16% this year, indicating a growing market for lidar technology.
Chen Jinzhu, CEO of consultancy Shanghai Mingliang Auto Service, highlighted the potential for top players like Hesai to benefit from the expanding use of lidar sensors as production costs decrease with higher output.
Hesai, which raised $190 million through a Nasdaq listing in February 2023, reported substantial revenue growth despite a widened net loss in 2023. The company’s expansion into Europe not only aligns with its global ambitions but also serves as a strategic move to mitigate potential tariff issues amid regulatory scrutiny in various markets.
