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11 Mar 2025
Chinese firm says it will open a new production line this year as annual capacity approaches two million units.
After shipping more than half a million lidar units in 2024, Hesai Technology says it has plans for another major expansion this year amid burgeoning demand from automobile manufacturers.
The Shanghai-based company, whose stock is listed on the Nasdaq, has just posted sales revenues of ¥2.08 billion (equivalent to $285 million) for 2024, up from ¥1.88 billion ($264 million) in 2023.
However the number of lidar units shipped by the firm has grown at a much faster rate, just topping 500,000 last year, compared with 222,000 in 2023.
In his outlook for this year, CEO and co-founder Yifan “David” Li pointed out that Hesai had reached a monthly run-rate of 100,000 units in December, and that the forthcoming ramp of the new “ATX” model - selling at around $200 - will further raise its output.
Major deal struck
With 2025 sales now expected to rise to between ¥3 billion and ¥3.5 billion, and a new sales deal reportedly struck with Mercedes-Benz, Hesai’s stock price surged in value by more than 30 per cent following the latest update.
“In 2024, Hesai achieved a milestone year with record-breaking lidar shipments, more than doubling annually for four consecutive years, and achieving the industry’s highest revenues,” Li told investors. “We also made history as the world’s first lidar company to achieve full-year non-GAAP net profits.”
The CEO added: “The lidar industry is undergoing an unprecedented transformation. Our ADAS [advanced driver assistance systems] lidars offer unbeatable value - making cars safer, smarter, and more desirable.
“Lidar is no longer optional; it has become as essential as the seat belt for intelligent driving.”
Li said that the company was “beyond excited” to be awarded its latest design win, which a Reuters report indicates to be with Mercedes-Benz. The exclusive, multi-year program is expected to last into the next decade, and will be applied across both combustion engine and electric vehicle platforms.
Demand surging
Describing that deal as “the largest global program for the automotive lidar industry”, Li also said that Chinese car makers were “driving a lidar revolution”, with adoption accelerating towards the mass market as the cost of the technology continues to fall.
Hesai reckons that its new ATX lidar, which has recently entered mass production, will accelerate that market penetration, with design wins already secured with the likes of Great Wall Motor and Changan.
“Our momentum is real,” CEO Li added. “As of today, we have already secured design wins for 120 vehicle models across 22 OEMs worldwide, including a remarkable nine out of the top ten largest automakers by market capitalization in China.
“In 2025, with demand surging, we're launching new production lines in Q1, which will begin production in Q3. By the end of the year, our annualized production capacity is expected to reach two million units.
“We are not just building lidar, we're reshaping the future of mobility. We are bringing intelligence and safety to everyone and everywhere. This isn't just innovation, it's a movement and we are leading it.”
Explosive growth
Hesai says that it will also benefit from higher sales of higher-margin lidar sensors for robotics applications this year, thanks in part to a new application in robotic lawnmowers, although its breakdown for 2024 sales shows just how the automotive sector is now dominating its business.
The firm reported 45,500 unit sales for robotics in 2024, up from around 27,000 units in 2023. But for ADAS-related automotive applications, unit sales of just over 456,000 in 2024 more than doubled from 195,000 units in 2023.
On the bottom line, Hesai still posted an operating loss of ¥205 million ($28.4 million) for the full year, under GAAP rules. However for the closing quarter of 2024 it reported an operating profit of ¥107 million ($14.6 million) as it made more effective use of growing production capacity.
For 2025, company CFO Andrew Fan is forecasting a significant step up in profitability, telling investors: “This growth will be driven by total shipments projected to reach 1.2 million to 1.5 million units, with over 80 per cent of units [for] the ADAS sector.
“This explosive growth not only sets the stage for unstoppable growth, but also cements our path to long-term industry leadership.”
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