China's Hesai agrees to supply Mercedes with lidar sensors in first deal of its kind

China's Hesai agrees to supply Mercedes with lidar sensors in first deal of its kind

The Chinese LiDAR sensor manufacturer Hesai has recently announced plans to halve the price of its LiDAD sensors in 2023, aiming to make the technology more accessible for electric vehicles (EVs) [1]. This move is expected to significantly boost the adoption rate of LiDAR technology in the EV market, with Mercedes-Benz being the latest automaker to benefit from this cost reduction.

Hesai's LiDAR sensors create three-dimensional images of a vehicle's surroundings using lasers, providing crucial data for self-driving systems [1]. The company's next-generation LiDAR product, ATX, is expected to be sold for advanced driver assistance systems (ADAS) from next year, with a price tag of under $200 - half the price of the current AT128 model [1].

Mercedes-Benz, known for its commitment to innovation and sustainability, has been actively exploring the development of autonomous EVs. The collaboration with Hesai marks the first time a major automaker has agreed to use Chinese-made LiDAR sensors in its vehicles. This deal is expected to pave the way for other Chinese LiDAR sensor manufacturers to enter the global automotive market.

According to a report by Reuters, Hesai Group CEO David Li expects the adoption rate of LiDAR technology in Chinese EVs and plug-in hybrids to rise to 40% by 2025, compared to the current rate of approximately 24% [1]. This growth is driven by strong demand from Chinese automakers and the government's push for the development of autonomous vehicles.

Hesai is also planning to more than double its production capacity at its Hangzhou plant in 2025, reaching a full annual capacity of 1.5 million units [1]. This expansion is expected to support the growing demand for LiDAR sensors in the global automotive market.

In summary, Hesai's collaboration with Mercedes-Benz marks a significant milestone in the adoption of affordable LiDAR technology in the global EV market. This cost reduction is expected to make LiDAR technology more accessible to a wider range of automakers and consumers, ultimately accelerating the development and deployment of autonomous EVs.

References:
[1] Reuters. China's Hesai to halve price of lidar sensors for electric vehicles in 2023. https://www.just-auto.com/news/chinas-hesai-lidar-prices/