China’s Hesai will double production as lidar sensor industry shakes out

Chinese lidar manufacturer Hesai plans to double its production capacity from 2 million to 4 million units in 2026, aiming to dominate the global lidar sensor market. This expansion follows Hesai surpassing 1 million units in 2025 and is driven by growing demand in automotive and robotics sectors. Hesai highlighted that lidar sensors are now installed in 25% of new electric vehicles in China, with many cars integrating three to six sensors each, significantly broadening the company’s market potential. Hesai currently serves 24 automotive customers, including a leading European automaker, and has secured 4 million orders for its latest ATX lidar sensor. Hesai’s growth contrasts with the recent bankruptcy of U.S. lidar maker Luminar, which struggled due to failed automotive partnerships and intense price competition from Chinese manufacturers like Hesai. Luminar’s bankruptcy filings cited cost pressures from lower-priced Chinese competitors as a key factor in its downfall. Hesai has also contributed to a 99.5%