**The Lidar Sensor Shakeout: Hesai Seeks to Double Production Amid Industry Turmoil**
The lidar sensor market is in a state of upheaval, but one Chinese player, Hesai, is doubling down on its growth plans. The company aims to crank out 4 million units this year, up from a whopping 1 million+ in 2025. This aggressive move comes on the heels of US-based Luminar’s Chapter 11 bankruptcy filing, a stark reminder that this space is anything but guaranteed.
Hesai’s surge in production capacity is not a surprise, given its massive funding haul and dual listings on the Nasdaq and Hong Kong stock exchanges. The company’s automotive clients include 24 big-name players, with a “top European” automaker on board. Its order book is also looking healthy, with 4 million ATX lidar sensors secured. But what’s behind this explosive growth? According to Hesai, it’s a combination of accelerating demand in the automotive and robotics industries, particularly in China’s massive electric vehicle market.
Here, lidar sensors are now used in a quarter of new EVs sold, with many models featuring three to six sensors per vehicle. That’s a huge addressable market, and Hesai is making the most of it. While Luminar’s struggles serve as a cautionary tale, Hesai is pressing on, touting deals with the likes of Pony AI, Motional, WeRide, and Baidu.
Luminar’s demise is a signal that the lidar sensor industry is in a period of rapid consolidation. Delays and cost overruns scuppered deals with Volvo, Polestar, and Mercedes-Benz, despite initial promises to take a million+ units off Luminar’s books. The company’s struggles demonstrate that, in this space, anything can happen.
Now, at CES, Hesai is showcasing its latest lidar tech, including a robotic lawnmower that’s making waves. With prices plummeting 99.5% in just eight years, Hesai is pushing hard to stay competitive. And it’s succeeding: the company’s ATX lidar sensor is driving the trend towards affordability, making it a major player in the industry.
But at what cost? Luminar’s chapter filings highlighted the struggle to stay afloat amidst cheap competitors from China. It’s a cat-and-mouse game, and Hesai is poised to come out on top. For now, at least.
