Hesai Group, China’s largest LiDAR manufacturer, plans to establish its first overseas factory next year as customers seek to mitigate geopolitical risks, Chief Financial Officer Andrew Fan told the Financial Times.
Hesai aims to break ground on the project by year-end, targeting production in 2026. The facility is expected to create “hundreds of jobs locally,” though the company has not disclosed its location. “Our clients who are hoping to diffuse the risks have found it a wise approach,” Fan said, emphasizing the need for a diversified supply chain to guard against logistical disruptions.
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The expansion follows Hesai’s exclusive multi-year agreement with a leading European automaker, announced on March 12. While the company did not name its partner, a Reuters report on March 11 identified German luxury carmaker Mercedes-Benz (MBGn.DE) as a customer, marking the first instance of a foreign automaker integrating Chinese-made LiDAR into vehicles sold globally.
Hesai delivered 501,900 LiDAR units in 2024, a 126% increase from the previous year, and became the first publicly traded LiDAR maker to post a full year of profitability. The company projects shipments of 1.2 million to 1.5 million units in 2025, with over 80% allocated to advanced driver assistance systems (ADAS).
See also: Hesai Expands Partnership with BYD for Lidar Systems in 2025 Models
