David Li, the Chief Executive, stated in an interview that the industry is advancing to a phase where millions of cars sold each year will come equipped with lidar technology. He also mentioned that cutting the cost by half would make lidar an attractive option for more affordable electric vehicles, specifically those priced under 150,000 yuan (USD 20,000).
China’s Hesai Group, the leading producer of lidar sensors for autonomous driving, announced plans to cut the price of its main product by half next year, a move expected to significantly boost the technology’s adoption in electric vehicles. The company’s CEO, David Li, mentioned that this pricing strategy could lead to lidar becoming commonplace in millions of cars sold each year. The reduced cost would make lidar attractive for lower-priced electric vehicles under 150,000 yuan (USD 20,000), with the adoption rate for more expensive models likely increasing to 40%.
Lidar, which uses lasers to create three-dimensional images of a vehicle’s surroundings, is crucial for navigating around obstacles and is a key component in many self-driving systems. Hesai’s next-generation lidar, the ATX, aimed at advanced driver assistance systems, will retail for under USD 200, significantly less than the current AT128 model. This price reduction is facilitated by Hesai’s development of its own chips and enhanced factory operations.
Following a third-quarter loss, the company reported a surge in its shares by 44% after announcing these plans, reflecting a positive market response. Hesai, which supplies lidar to several Chinese automakers, including Li Auto and BYD, has seen a significant increase in lidar sales, which more than tripled in the last quarter.
In addition to its domestic success, Hesai is looking to expand globally and has been engaging with foreign automakers. The company is exploring opportunities to establish production facilities overseas, particularly in response to trade tensions, which may affect market access in regions like the U.S. and Europe. CEO Li expressed optimism about the global trend toward local manufacturing and job creation in foreign markets.
Despite its growing adoption, lidar technology is not utilized by all, notably Tesla, which relies on cameras and AI for vehicle safety features.
