Hesai Group to Halve Lidar Prices in 2025

Hesai Group, the leading manufacturer of LiDAR sensors for autonomous vehicles, plans to cut the price of its key product by 50% in 2025, which is expected to enhance the adoption of LiDAR technology in electric vehicles (EVs). CEO David Li stated this move would make LiDAR appealing for lower-cost EVs under 150,000 yuan ($20,000) and could increase the adoption rate for higher-priced EVs to 40%, up from the current 24%. The new LiDAR product, ATX, designed for advanced driver assistance systems, will retail for less than $200, significantly undercutting the current model. This price reduction is facilitated by self-developed chips and improved manufacturing efficiency. Following strong demand and positive earnings reports, Hesai's stock surged 44%, reflecting investor confidence as the company aims to ramp up production capacity to 1.5 million units annually. Li emphasizes the importance of LiDAR as a standard safety feature for EVs, likening it to airbags and seatbelts.