Hesai Group, a China-based LiDAR sensor manufacturer for autonomous driving, plans to halve the price of its key product, LiDAR, next year, reported Reuters.
The move is aimed at boosting the adoption of LiDAR technology in electric vehicles (EVs).
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Hesai Group CEO David Li was quoted by the publication as saying: “We are moving to a stage where millions of cars sold annually are equipped with LiDAR.”
Li said that reducing the price will make LiDAR technology attractive even for lower-cost EVs priced below 150,000 yuan ($20,000).
For EVs priced above this, the LiDAR technology adoption rate is expected to rise to 40%, compared to the current rate of about 24% for Chinese EVs and plug-in hybrids, as per auto parts trading platform Gasgoo.com.
Hesai’s LiDAR technology create three-dimensional images of a vehicle’s surroundings using lasers, aiding in navigation around obstacles.
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By GlobalDataThe sensors are said to be crucial component of many self-driving systems.
Li added: “We should see this as the popularisation of LiDAR as a standard safety component for EVs.”
Hesai plans to sell next-generation LiDAR product, ATX, for advanced driver assistance systems (ADAS) from next year. It is planned to be sold under $200, which is half the price of the current AT128 model.
Li said the price cut will be possible by using in-house chips for LiDAR sensors and improving factory operations.
Driven by strong demand from Chinese automakers, Hesai is also planning to more than double its production capacity at its Hangzhou plant in 2025.
The facility is expected to reach a full annual capacity of 1.5 million units.
In Q3 2024, the firm’s LiDAR sales more than tripled to nearly 130,000 units.
Hesai CFO Andrew Fan said that company is also considering global expansion. It is also in discussions with foreign automakers.
The company is also “actively exploring” possibilities to set up plants in foreign countries.
Li added: “In the long run, the global trend would be for countries like the United States to encourage us to set up local plants and create jobs locally.”
Hesai Technology signed a cooperation framework with SAIC Volkswagen to build a new ecosystem for the automotive industry.
