Hesai Profits Hit 10X Jackpot Fueled by Sales Boom in Europe’s Self-Driving EV Market

Hesai proudly announced that the next-gen cars of leading European carmakers would use its advanced ultra-long-range automotive lidar over the next ten years.

Hesai Group might get golden eggs as its profits might rise tenfold this year as the world’s most valued manufacturer of lidar (light detection and ranging) radars casts its eyes on Europe to install its sensors on self-driving electric cars (EVs) to help them in navigation.

The Shanghai-based company is known for developing lidar products, such as sensors, used in advanced driver assistance systems (ADAS), vehicular automation, robotics, and industrial sectors.

The company sealed the deal to supply Mercedes-Benz with light-detecting and ranging sensors. It is in talks with many international car brands, which may result in significant revenue in 2027.

Hesai’s chief financial officer, Andrew Fan, assured that international automakers would buy lidars as they consider them a crucial component for their petrol and electric cars.

He believes that the supply contracts will bring significant revenue due to the heavy demand for manufacturing from those brands.

Hesai is following in the footsteps of its role model, blazed by Chinese EV assemblers like BYD and Xpeng, as they have taken advantage of the overseas market to survive the brutal domestic discount war.

The 10-year-old company’s global dreams will come true due to its cost advantage and technological advancement, which developed those muscles through brutal competition at home.

Hesai proudly announced that the next-gen cars of leading European carmakers would use its advanced ultra-long-range automotive lidar over the next ten years. According to some sources, Mercedes-Benz would be the first client, making it the first major European automaker to cherry-pick a Chinese supplier for its global product.

Fan proudly stated, without confirming or denying the rumours, that nobody can ignore products made with advanced technology like theirs.

Lidars help measure the distance from objects. Smart cars, including the new-gen EVs and luxury brands, use this data to map their environment precisely, which is necessary for self-driving or assisted driving.

According to the consulting firm Yole Group, Hesai has a 37% market share in the global lidar sensor industry, with clients like Volvo Cars’ owner Geely and Li Auto.

However, Hesai might not have sunny days in the United States after the US Defence Department intermittent penalties for allegedly working with the Chinese military. But Hesai said they are initiating legal action against the Pentagon to remove them from that list.

Last year, the European Union (EU) and the United States imposed new tariffs on Chinese-made EVs.

David Zhang, general secretary of the International Intelligent Vehicle Engineering Association, assured that trade barriers would not stop Chinese suppliers from entering foreign markets. They will consider setting up local production units outside of China.

Hesai was investigating the feasibility of establishing plants abroad, Fan stated, refusing to give more information.

Hesai was the first lidar-making company to report a profit with a net income of 14 million yuan (US$1.9 million) in 2024 after a financial loss of 241 million yuan the year before.

Fan stated company’s net profit may increase from 200 million to 350 million yuan in 2025 due to increased sales from delivering lidar sensors to robots and car makers.

He added that Hesai had reduced the cost of the sensors from thousands of dollars to around $200 as the production volume increased five years ago.

Zhang Yongwei, general secretary of China EV100, a non-governmental organization that includes the majority of the country’s leading EV executives as members, states that around 15 million new cars, or two-thirds of China’s auto sales, will be installed with an autonomous driving system.

Zhang claims that intelligent vehicles would have at least Level 2 self-driving capabilities, including steering, acceleration, and deceleration, but drivers would always need to take control at any time.