Lidar sensors drive growth for Chinese carmakers as auto sector slows

Hesai Group, the world's largest manufacturer of lidar sensors, has recorded higher orders this year compared to the same period in 2024, driven by Chinese carmakers' accelerated adoption of smart-vehicle technology even as the broader auto market struggles.

"Orders for our lidar sensors [this year] were higher than in the same period last year," chief financial officer Andrew Fan told the South China Morning Post on Wednesday. "An increasing percentage of new [car] models are now fitted with lidars as brands make them more intelligent".

Lidar penetration more than doubles in key segment

Mainland China saw a sharp jump in lidar adoption among mid-priced vehicles between 2025 and early 2026. Cars priced between 150,000 yuan (US$22,300) and 200,000 yuan equipped with the sensors rose from 12 per cent in 2025 to 27 per cent in the first quarter of 2026, according to China Passenger Car Association data.

Fan said millions of new cars are expected to be fitted with lidars, adding that "the growth driver is big enough for us to pursue further expansion".

Tech supplier sees opportunity amid automotive slowdown

The demand surge for hi-tech components suggests Chinese carmakers' reinforced push to produce more intelligent vehicles could sustain growth for suppliers like Hesai, even as the broader automotive market remains lacklustre. The company is signalling ambitions beyond the supply chain, repositioning itself as a top technology firm.

Source: South China Morning Post