German luxury carmaker Mercedes-Benz has announced a partnership with Hesai Group (NASDAQ: HSAI) to incorporate LiDAR sensors into their smart-driving cars for global markets. This marks the first time a foreign automaker has utilized Chinese-made LiDAR technology for models sold outside of China.
According to a report by Reuters, Mercedes-Benz has been considering this decision for several months, weighing legal and geopolitical risks before ultimately choosing Hesai as their partner. The decision was influenced by Hesai’s lower costs and mass production capabilities, making them an attractive choice for Mercedes-Benz.
Hesai, China’s largest LiDAR maker, revealed in a statement that they have entered into a multi-year exclusive supply partnership with a top European automotive OEM. The agreement spans until 2030 and will involve the supply of high-performance, ultra-long-range LiDARs for the automaker’s next-generation vehicle platforms, covering both fuel and new energy vehicle (NEV) lineups.
As of February, Hesai has collaborated with 22 domestic and foreign automakers to provide LiDARs for 120 different models. The company has seen significant growth, with non-GAAP net income of approximately RMB 13.7 million ($1.9 million) and operating cash flow of RMB 63 million in 2024. Their revenue for the same year reached RMB 2.08 billion, representing a 10.7 percent increase year-on-year.
Looking ahead to 2025, Hesai aims to ship between 1.2 million to 1.5 million LiDARs, a substantial increase from the previous year. The majority of these shipments will consist of ADAS LiDARs, accounting for over 80 percent, with robotic LiDAR shipments targeted at 200,000 units.
With a positive financial outlook, Hesai projects revenue of RMB 3 billion to RMB 3.5 billion for 2025, indicating a growth of 44 percent to 49 percent year-on-year. This positive news has also reflected in their stock performance, with shares on Nasdaq rising by 50.41 percent to $24.08 on March 11, reaching their highest level since the company’s IPO in February 2023.
The partnership between Mercedes-Benz and Hesai showcases the increasing integration of advanced technologies in the automotive industry, paving the way for smarter and more efficient vehicles on a global scale.
