Report: Mercedes-Benz teams up with China’s Hesai to develop Lidar-equipped cars for global markets
In an exclusive report by Reuters, Mercedes-Benz will be developing smart driving cars for global markets equipped with Lidar sensors made by China’s Hesai Technology. This will be the first time a foreign carmaker would be utilising Chinese-made tech for models sold outside the world’s biggest auto market.
The tie-in coincided with increased trade tensions with the U.S. ramping up efforts to curb the adoption of Chinese components and software solutions in vehicles developed by global automakers.
Reuters’ source said Mercedes-Benz deliberated for months over the decision due to legal and geopolitical risks. An anonymous person who has direct knowledge told the newswire agency that the company eventually chose Hesai because of its lower costs and ability to produce at scale.
Mercedes-Benz did not immediately respond to Reuters’ request for comment.
On 10 March, Hesai officially announced that it has secured an exclusive multi-year Lidar contract with a “leading European OEM”. China’s largest Lidar producer will provide advanced ultra-long-range automotive Lidars for the unnamed company’s upcoming platforms which will include both internal combustion engine (ICE) and electric vehicle (EV) models.
Hesai stated that this multi-year program will last into the next decade and marks the largest global program for the automotive Lidar industry.
“This long-term partnership is a resounding endorsement of our unrivaled performance and quality. Meeting the rigorous standards of a market leader, our quality has become our namecard—a powerful symbol of excellence and a vote of confidence in our visionary future,” Hesai CEO and co-founder David Li said in the press release.
“We are immensely proud to empower the future of mobility, with our state-of-the-art lidar technology playing a pivotal role in conventional and electric vehicle platforms.
“This design win illustrates the importance of lidar technology for the future of advanced intelligent driving systems, helping to enhance safety, prevent accidents, and save lives,” Li continued.
Hesai’s Lidar technology has been used by multiple brands in China, both domestic and foreign carmakers. Its Chief Financial Officer Andrew Fan told Reuters that European brands have used Hesai as a Lidar supplier for models sold in China.
The company’s website listed mostly Chinese brands like BYD, Leapmotor, Li Auto, and Changan as partners. The foreign carmakers listed like Lotus, Volkswagen, and General Motors are all owned by or have a joint venture stake with a Chinese company.
To meet rising demand in China, Hesai has expanded two production lines in the country and aims to achieve an annual capacity of more than 2 million units this year. Next year, it plans to set up an overseas plant though the location is still unknown.
Recently, the Leapmotor B10 was launched in China and is one of the most affordable cars to feature Lidar. Equipped with Hesai’s ATX Lidar that costs around USD 200 (RM 887) each, Fan told Reuters that it is less expensive than safety belts and airbags.
