Hesai Technology, the leading LiDAR manufacturer in China, is planning a fourfold increase in its production capacity by 2025 to address the rapidly growing demand for automotive advanced driver-assistance systems (ADAS).
The company aims to ramp up annual LiDAR production from 502,000 units in 2024 to 2 million units in 2025. CEO David Li noted that the supply chain is secure and the primary challenge lies in constructing additional manufacturing facilities to support this expansion.
With increased production volumes, Hesai has reduced the unit cost of its LiDAR sensors from over US$1,000 to approximately US$200. This substantial cost reduction is enabling automakers to more widely adopt LiDAR technology, supporting the integration of advanced safety features and higher levels of vehicle autonomy.
Global strategy and market dynamics
According to CNBC, Li acknowledged that US tariffs are negatively affecting Hesai's business, forcing some customers to accelerate orders or absorb additional costs. Speaking at Auto Shanghai 2025, Li highlighted that while demand in the U.S. is slowing, the company is experiencing increased growth in Europe. To further diversify its supply chain, Hesai is considering establishing manufacturing operations in Southeast Asia within the next two years.
Major clients such as Li Auto and Geely are set to receive up to 1.5 million LiDAR sensors from Hesai this year. Production of the AT1440 LiDAR sensor, built for Level 4 autonomous driving, is scheduled to begin in the second half of 2025.
According to the South China Morning Post, this development coincides with stricter government oversight on driver-assistance systems in China, following several high-profile accidents. Analysts believe Hesai's advanced detection capabilities position the company to benefit from these heightened regulations.
Strategic partnerships and outlook
In addition to the automotive industry, Hesai supplies LiDAR to robotics manufacturers. According to Gasgoo, the company has entered strategic collaborations with Manycore Tech, KargoBot, and Kutting Technology to broaden LiDAR applications in spatial intelligence, autonomous freight, and smart garden equipment.
For example, Hesai's AT1440 debuted in KargoBot's first autonomous transport robot and will be used in the company's L4 autonomous truck platooning solution, which has already achieved over 18 million kilometers of L4 operation.
Hesai will also supply 300,000 JT-series LiDAR units to Kutting Technology for use in robotic lawnmowers.
With more than 100 design wins across 22 automotive OEMs and a strong presence in both automotive and robotics sectors, Hesai is well-positioned to maintain its leadership as the industry moves toward higher levels of vehicle autonomy and smarter machines.
Cost reduction drives mass adoption & industry leadership
Hesai CFO Andrew Fan previously disclosed in an interview that over the past five years, due to steadily increasing production volumes, the company has successfully reduced the unit cost of its products from over a thousand US dollars to around US$200.
This cost reduction has been critical for mass adoption, enabling automakers to integrate LiDAR into mid-range vehicles.
As regulatory scrutiny intensifies and consumer expectations for safety and automation rise, Hesai's focus on innovation, scale, and cost reduction is setting the pace for the global LiDAR sector.
Article translated by Levi Li and edited by Jack Wu
