Mercedes Partners with China's Hesai for Global Smart Car Development

Mercedes-Benz has decided to integrate Hesai's lidar sensors into its smart driving cars for global markets, marking the first instance of a foreign automaker utilizing Chinese-made lidar technology in vehicles sold outside of China. This decision comes amid heightened trade tensions as the U.S. seeks to limit the use of Chinese components in global automotive manufacturing. After months of deliberation regarding legal and geopolitical risks, Mercedes chose Hesai due to its cost efficiency and large-scale production capabilities. Following the announcement, shares of U.S.-listed Hesai surged by 36.6%, and the company projected significant revenue growth by 2025. Hesai's lidar technology is vital for self-driving systems, producing three-dimensional images for navigation and obstacle detection. The move signals both a shift in supplier dynamics and the competitive strategies of German automakers amidst economic pressures.