Hesai Group, China’s largest LiDAR maker, is set to make a significant move by opening its first factory overseas by the end of this year. The decision comes as customers urge the company to navigate geopolitical tensions, as reported by the Financial Times.
CFO Andrew Fan expressed the company’s ambition to accelerate its global presence through overseas production. The plan is to break ground on the overseas project before the year ends, with production targeted for 2026. This move is seen as a strategic step towards achieving Hesai’s global ambitions.
The new plant is expected to create hundreds of local jobs, although the exact location remains undisclosed at this time. Fan highlighted the importance of diversifying the supply chain to mitigate risks and potential logistical disruptions, a strategy that has been well-received by clients.
In a recent statement, Hesai announced a groundbreaking multi-year exclusive supply partnership with a top European automotive OEM, rumored to be Mercedes-Benz. The partnership will see Hesai supplying high-performance ultra long-range LiDAR for the automaker’s next-generation vehicle platforms, spanning across both fuel and new energy-vehicle arrays.
According to reports, Mercedes-Benz is set to utilize Hesai’s LiDAR sensors in developing smart-driving cars for the global market. This marks the first instance of a foreign automaker incorporating Chinese-made LiDAR technology into models sold outside of China.
Hesai has established partnerships with 22 domestic and foreign automakers, supplying LiDARs to 120 models as of February. The company achieved significant financial milestones in 2024, posting non-GAAP net income of approximately RMB 13.7 million ($1.9 million) and positive operating cash flow of RMB 63 million.
With LiDAR deliveries reaching 501,900 units in 2024, Hesai aims to further expand its market presence in 2025. The company projects LiDAR shipments of 1.2 million to 1.5 million units this year, with a focus on ADAS LiDARs accounting for over 80% of the shipments and a target of 200,000 robotic LiDAR shipments.
The move to open an overseas plant and expand global partnerships underscores Hesai’s commitment to driving innovation in the LiDAR industry and solidifying its position as a key player in the automotive technology market.
