Archive — US — techcrunch
China’s Hesai will double production as lidar sensor industry shakes out
China's Hesai aims to double its lidar sensor production from 2M to 4M units in 2026 amid a market shift following U.S. competitor Luminar's bankruptcy. Increased demand from the automotive sector, especially electric vehicles, and plans for robotics applications are driving this growth. Hesai has attracted significant investment and is working under scrutiny from the U.S. government but boasts major automotive partnerships.
Key points
- Hesai plans to double lidar production from 2 million to 4 million units.
- This announcement follows Luminar's Chapter 11 bankruptcy filing.
- Hesai attributes production increase to rising demand in automotive and robotics sectors.
- Lidar sensors are now used in 25% of new electric vehicles in China, raising market potential.
- Hesai has 24 automotive customers and 4 million orders for its latest lidar sensor.
- Despite market opportunities, lidar remains an uncertain venture — Luminar's failure highlighted this.
- Hesai's cost reduction of lidar sensors by 99.5% over eight years has increased competitive pressure.
Why it matters
- The lidar industry is consolidating, with major players like Ouster acquiring competitors.
- Historical tension between U.S. and China technology sectors emphasizes geopolitical impacts.
- 2025 IT trends show increasing reliance on AI and automation, necessitating further advancements in sensors.
- The shift towards electric vehicles and robotics supports future growth in lidar applications.
Hesai's ambition to double production amidst a turbulent lidar market indicates a strategic move to capitalize on rising demand in automotive and robotics, showcasing a pivotal moment shaped by competitive pressures and industry consolidation.