Unveiling the Editor’s Pick for Free
Gear up as Roula Khalaf, the Editor of the FT, handpicks her favorite tales for you in the weekly newsletter.
- Expanding Horizons: China’s premier producer of laser sensors, crucial components in autonomous vehicles, is charting new territories by establishing its first overseas factory next year.
- Shanghai-headquartered Hesai, entangled in a tussle due to a Pentagon blacklist, is exploring the idea of diversifying its manufacturing sites beyond China’s borders.
- CFO Andrew Fan stated that the move aims to mitigate risks arising from geopolitical tensions and tariffs, a strategy applauded by clients seeking to safeguard operations.
- Faced with disruptions, a diversified supply chain could serve as a shield against logistics hiccups and instabilities.
- Facing Adversity: Hesai, a forerunner in lidar systems utilizing laser beams to power autonomous vehicle navigation, attracted global attention following contentious encounters with the Pentagon.
- Despite being wrongly labeled as a "Chinese military company," Hesai asserted that its products are strictly for civilian and commercial use.
- The blacklisting caused apprehension among potential investors and clients, impacting stock sales and product purchases.
- Pressing forward, Hesai recently secured a deal with a European automaker, marking a significant step towards international integration amidst challenging circumstances.
- Global Aspirations: Embracing a bold vision of global expansion, Hesai anticipates commencing its initial overseas project by the year-end, with plans for operational readiness by 2026.
- The venture aims to create employment opportunities locally, underscoring the company’s commitment to global market penetration.
- Shares of Hesai surged by 50% in the US following the announcement of breaking even in 2024, marking its emergence as the world’s inaugural profitable listed lidar manufacturer.
- With a promising outlook for 2025, Hesai anticipates an adjusted net profit between Rmb350mn to Rmb500mn, surpassing analysts’ estimates.
In the backdrop of retrenchment among US counterparts, Chinese lidar startups are leveraging China’s global dominance in electric vehicle manufacturing to propel growth.
- Chinese suppliers, claiming a significant 65% share in the global lidar market, are poised to maintain their supremacy due to robust demand from local automakers.
- Bolstered by competitive pricing and enhanced product offerings, Chinese lidar companies are witnessing a surge in adoption rate, particularly in Chinese markets, heralding a breakthrough year in 2025.
In a bid to transcend conventional bounds, Hesai is actively seeking collaborations across diverse industries, expanding its clientele beyond the autonomous vehicle sector.
- With partnerships forged with companies like China’s Unitree and Mova, Hesai is on a quest to revolutionize smart driving technologies.
- Upholding the significance of lidars as indispensable safety components in the realm of intelligent transportation, Hesai’s vision extends beyond conventional boundaries.
In a nutshell, the journey of Hesai encapsulates resilience, innovation, and global aspirations. As the company paves its path towards internationalization amid adversities, the spirit of technological advancement remains undeterred. Join the global quest for progress, steering towards a future shaped by cutting-edge innovations.
