In light of the rapidly increasing demand and declining costs, Hesai, a Chinese lidar sensor manufacturer, is contemplating an expansion of its operations into Europe. The company seeks to capitalize on the growing utilization of lidar technology, particularly within the automotive sector. Leveraging its new ATX technology, Hesai has developed products capable of real-time pixel-level filtration of over 99% of environmental noise, including rain, fog, and exhaust fumes.
CEO David Li Yifan has articulated Hesai’s long-term intentions to broaden its presence beyond China, with a specific focus on Europe. With the global automotive industry shifting towards greater integration of lidar technology, Hesai views this expansion as a strategic maneuver to meet the expanding demand in the marketplace. This strategic initiative comes at a time when six out of every 10 new electric vehicles (EVs) worldwide are sold in mainland China, where lidars are perceived as indispensable for the advancement of fully autonomous vehicles.
The cost of lidar sensors has experienced a substantial decrease in recent years, rendering them more accessible for widespread deployment. Once deemed a costly and impractical venture, lidar technology has witnessed a notable surge in demand, exemplified by Chinese EV maker Xpeng’s introduction of the world’s first lidar-guided smart vehicle in late 2021.
According to Li, Hesai remains steadfast in its commitment to enhancing the affordability and accessibility of lidars, envisioning a future in which these sensors are integrated into every passenger vehicle. The company aims to curtail production costs through heightened output, ultimately leading to reduced prices for consumers.
The escalating demand for lidar sensors has translated into record revenue for Hesai, as China’s EV manufacturers continue to embrace autonomous driving technology. Despite recording a net loss of 476 million yuan in the previous year, Hesai reported a 56.1% surge in revenue and a remarkable 176.1% increase in deliveries. This upward trajectory is anticipated to persist, with the penetration rate of EVs equipped with lidar sensors in China projected to reach 16% this year.
Looking ahead, Hesai aspires to play a pivotal role in the expansion of lidar technology, particularly within the European market. Given the European Commission’s scrutiny of foreign state subsidies and the potential imposition of tariffs on Chinese-made EVs, Hesai’s strategic establishment of facilities in Europe could solidify the company’s status as a global leader in lidar technology.
As the global adoption of lidar technology continues to gain momentum, Hesai’s foray into Europe signifies a noteworthy milestone in the company’s growth trajectory. With the potential to push the boundaries of lidar technology and enhance its accessibility to a broader audience, Hesai’s expansion holds promise for the automotive industry and beyond.