Hesai's Q1 2025: Unpacking Key Contradictions in ADAS Lidar ASP, Margins, and Capacity Expansion

ADAS lidar ASP and gross margin trends, volume and ASP expectations for ATX lidar, ADAS lidar ASP trend and margins, capacity expansion and overseas manufacturing are the key contradictions discussed in Hesai's latest 2025Q1 earnings call.



Strong Revenue and Shipments Growth:
- Hesai Group's revenue saw a 46% year-over-year increase, reaching CNY 525.3 million (approximately USD 72.4 million) in Q1 2025.
- The company delivered nearly 200,000 lidar units, more than triple the volume from the same period last year.
- The growth was driven by strong execution, operational discipline, and the rapid adoption of the company's ATX lidar among OEMs.

Automotive Lidar Market Leadership:
- Hesai was ranked as the #1 global leader in the automotive lidar market share by Yole Intelligence, with a 33% share of the global automotive lidar market and a 26% share of the global passenger car lidar market.
- The company secured significant design wins with over 120 vehicle models across 23 OEMs worldwide.
- This leadership position was achieved due to Hesai's innovative technology, scalable production, and strong customer partnerships.

Innovation and Product Launches:
- The launch of the ATX lidar and the Infinity Eye platform, featuring high-performance lidar sensors, were key drivers for the company's growth.
- Hesai's ATX lidar entered mass production in Q1, shipping nearly 40,000 units in its first quarter.
- These innovations contributed to cost-effective solutions and expanded Hesai's market reach, particularly in affordable passenger vehicles.

International Expansion and Tariffs:
- Hesai signed a lease for a new overseas factory in May, with a projected facility launch in late 2026 or early 2027, to mitigate geopolitical risks.
- Despite tariffs impacting certain cost considerations, Hesai's international strategy remains focused on serving global customers more effectively.
- The company remains proactive in managing supply chain challenges and expects minimal disruption to its long-term growth trajectory.