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Mercedes-Benz to Use Hesai Lidar in Smart Driving Cars for Global Markets
Strategic Decision Amid Geopolitical Tensions
Mercedes-Benz has decided to equip its smart driving cars for global markets with lidar sensors from China’s Hesai Technology. This marks the first time a foreign automaker has opted for Chinese-made lidar technology for vehicles sold outside China. The decision comes amid rising trade tensions, particularly as the U.S. seeks to limit the use of Chinese components and software in vehicles developed by global automakers.
Balancing Risks and Competitiveness
German automakers, including Mercedes-Benz, are under pressure to remain competitive, particularly as they contribute significantly to Germany’s struggling economy. According to a source familiar with the matter, the company deliberated for months before choosing Hesai due to legal and geopolitical concerns.
Despite these risks, Mercedes ultimately selected Hesai for its cost advantages and ability to produce at scale. The company did not immediately respond to requests for comment.
Hesai’s Growing Presence in the Industry
Hesai, China’s largest lidar manufacturer, competes with U.S.-based firms such as Luminar. On Monday, Hesai announced an exclusive multi-year contract with a leading European automaker without naming the company.
Hesai’s Chief Financial Officer, Andrew Fan, confirmed the agreement but did not disclose the automaker’s identity. He emphasized that the decision was commercially driven, with no viable alternatives that could match Hesai’s performance and price. European manufacturers have previously used Hesai’s lidar for their models sold in China.
Expansion Plans and Market Demand
To meet growing demand, Hesai is expanding two production lines in China, aiming for an annual capacity of over 2 million units this year. The company is also planning to establish production lines overseas by next year to mitigate risks related to tariffs and logistics. However, the location of these facilities has not been disclosed.
Rising Demand for Lidar in Smart Vehicles
The demand for lidar technology is increasing, particularly in China, where automakers are incorporating advanced smart features in affordable vehicles.
On Monday, Leapmotor launched its B10 SUV, featuring a high-end smart driving system, with a starting price of $17,950. The vehicle includes Hesai’s ATX lidar, which costs around $200 per unit—less than the price of seat belts and airbags.
Conclusion
Mercedes-Benz’s decision to integrate Hesai’s lidar technology highlights a shift in the global automotive industry, where cost and efficiency are taking precedence over geopolitical concerns. As lidar technology continues to gain traction, Chinese manufacturers like Hesai are positioning themselves as key players in the smart driving sector.
“Mercedes-Benz to Use Hesai Lidar in Smart Driving Cars for Global Markets” “Mercedes-Benz to Use Hesai Lidar in Smart Driving Cars for Global Markets” “Mercedes-Benz to Use Hesai Lidar in Smart Driving Cars for Global Markets”