Hesai rides on lidar growth as smart cars gain ground despite China’s struggling market

Hesai Group, the world's largest manufacturer of lidar sensors, anticipates continued growth despite a struggling broader automotive market. Andrew Fan, the company's CFO, reported that lidar sensor orders for 2025 exceeded those from the same period in 2024. Lidar sensors, which use lasers to measure distances to objects and enable cars to build detailed maps of their surroundings, are increasingly being incorporated into new vehicle models as brands strive for greater intelligence.

Fan stated that lidars are expected to be installed in millions of new cars, providing a substantial growth driver for Hesai. In mainland China, 12% of new cars priced between 150,000 yuan and 200,000 yuan were fitted with lidars in 2025, and this proportion surged to 27% in the first quarter of 2026, according to the China Passenger Car Association.

Overall, mainland China's car deliveries fell 21% year-on-year in July, with 1.46 million units sold. Hesai reported a net income of 70.6 million yuan in the three months to June, a 60% increase from the previous year, and revenue grew by 21% to 860.8 million yuan. The company has recently unveiled its 6D full-colour platform, featuring lidar sensors capable of detecting objects in 3D space, including their reflectivity, velocity, and color.

The 6D sensors, powered by Hesai's proprietary Picasso system on chip, are currently undergoing customer validation. Hesai also plans to start delivering its new handheld device called Kosmo, described as a "physical AI eye" for capturing and recording spaces in 3D, during the third quarter of the current year.