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China’s car industry gears up for next level of self-driving tech: sensor maker Hesai

Use of advanced hardware will pick up next year, with some carmakers already adopting it to ‘pre-empt rivals’, CFO says

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People pass the Hesai Group booth at CES 2025 in Las Vegas, Nevada, on January 9, 2025. Photo: NurPhoto via Getty Images
Daniel Renin Shanghai

Preparations are well under way in China’s auto industry for the next generation of autonomous-driving features, even before Beijing clears the regulatory road ahead, according to the chief financial officer of the world’s largest maker of automotive lidar sensors.

Hesai Group is prepared to supply its light detection and ranging sensors – which employ laser beams to measure distances to objects – and other technologies for premium models with level 3 (L3) self-driving capabilities, Andrew Fan said in an interview.

Beijing has yet to legalise L3 systems, which are considered “hands-off” under criteria set by global standards organisation SAE International. But that was not stopping carmakers from looking ahead, Fan said.

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“Next year, we will see a more significant increase in adoption of advanced hardware and solutions used in cars that aim to meet the L3 standards,” Fan said. “In fact, some carmakers have already done this as they try to pre-empt their rivals.”

The cost of the advanced lidar sensors necessary for L3 could range from US$500 to US$1,000 per unit, Fan said, adding that demand was high as leading Chinese carmakers ramped up development of autonomous vehicles.
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Top carmakers, particularly those focused on premium electric cars, such as Geely’s Zeekr and Huawei Technologies-backed Seres, have designed and developed intelligent vehicles that are deemed semi-autonomous and are fitted with advanced lidar sensors.

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