Hesai rides on lidar growth as smart cars gain ground despite China’s struggling market
Chinese carmakers’ reinforced push to produce more smart vehicles could sustain growth for hi-tech component suppliers, even as the broader automotive market remains lacklustre, according to Hesai Group chief financial officer Andrew Fan. “Orders for our lidar sensors [this year] were higher than in the same period last year,” Fan told the South China Morning Post on Wednesday. “An increasing…
Chinese car manufacturers are investing in smart vehicle technology, which could boost the growth of hi-tech component suppliers like Hesai Group, according to the company's chief financial officer, Andrew Fan. The demand for lidar sensors, which help vehicles map their surroundings, has risen in 2025, with 27 percent of new cars priced between 150,000 yuan and 200,000 yuan equipped with these sensors, according to the China Passenger Car Association.
Hesai, the world's largest provider of lidar sensors, supplies products to the top 10 Chinese automotive groups as the industry races to develop driverless cars. Fan expressed Hesai's ambition to transform the company into a technology firm rather than just an automotive supply chain vendor, noting that the business scope will expand due to further technological advancements.
The company recently unveiled its 6D full-colour platform, capable of detecting an object's position in 3D space, reflectivity, velocity, and color. Hesai also plans to release its new handheld device, dubbed the "physical AI eye," in the third quarter of the year, which will capture and record spaces in 3D. Recently, a US court overturned a ruling that had placed Hesai on a list of Chinese military companies, emphasizing the company's focus on civilian lidar technology for commercial applications.
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