China’s Hesai Group, the world’s largest lidar sensor manufacturer for autonomous driving, plans to halve the price of its flagship product next year. This ambitious move aims to accelerate the adoption of lidar technology in electric vehicles (EVs), according to Chief Executive David Li.
Hesai’s forthcoming ATX lidar product, priced under $200, marks a significant reduction from its current AT128 model. Li believes this price drop will make lidar appealing even for budget-friendly EVs priced below 150,000 yuan ($20,000). For higher-end EVs, adoption rates could surge to 40%, compared to the current 24% adoption among Chinese EVs and plug-in hybrids, according to data from auto parts trading platform Gasgoo.com.
Lidar sensors use lasers to create three-dimensional maps of a vehicle’s surroundings, enabling better navigation and obstacle avoidance. Li likened the growing integration of lidar in EVs to the widespread adoption of safety features like airbags and seatbelts.
The price reduction, facilitated by Hesai’s self-developed chips and optimized factory operations, comes as the company ramps up production to meet soaring demand. Hesai plans to more than double its manufacturing output in Hangzhou next year, reaching an annual capacity of 1.5 million units. This expansion follows a strong Q3 performance, with lidar sales tripling to nearly 130,000 units and supply agreements with automakers like Li Auto and BYD.
Hesai also sees potential beyond China. Chief Financial Officer Andrew Fan confirmed ongoing discussions with foreign automakers to expand globally. Addressing trade tensions that may hinder entry into markets like the U.S. and Europe, Li noted the company is exploring opportunities to establish overseas plants, aligning with global trends to localize production and create jobs.
The announcement coincides with Hesai’s improved financial outlook. After reporting a Q3 net loss of 70.4 million yuan ($9.7 million), Li anticipates breaking even in the current quarter. Nasdaq-listed Hesai saw its stock jump 44% on Tuesday following the earnings report, boosting its market cap to approximately $875 million.
Despite Tesla’s preference for cameras and AI over lidar, Hesai remains optimistic about lidar’s role in advancing EV safety and functionality. By halving prices, Hesai is positioning itself to drive the mainstream adoption of lidar as a standard EV safety component.
Featured image courtesy of The Star
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