Hesai Doubles Lidar Production to 1 Million Units by 2026 for Autonomous Driving Boom
Hesai Group is expanding its lidar production at a rapid pace. The company aims to double its annual output to over 1 million units by the end of 2026, demonstrating its commitment to autonomy and self-driving technology. This growth follows a major $40 million order from a leading US robotaxi operator, further solidifying its position in the autonomous driving market.
The move comes as Hesai strengthens its position in autonomous driving technology, currently holding an estimated 61% share of the global Level 4 market, which is a testament to its autonomy meaning and capabilities.
Hesai’s expansion will rely on a new factory in Thailand and upgraded automated assembly lines in China, designed to meet rising demand for its lidar sensors, particularly for autonomous vehicles and to maintain its autonomy.
The company recently secured a significant contract worth over $40 million with a major US robotaxi operator. The deal involves supplying both long- and short-range lidar systems, with deliveries set to begin by late 2026, showcasing Hesai's commitment to autonomy and self-driving technology.
Analysts have noted potential risks tied to Hesai’s fast-paced growth, including challenges in managing investments and meeting production targets, which could impact its autonomy. Bank of America has named Hesai a top pick in the robotics sector, citing its production scale-up and integration with NVIDIA’s DRIVE Hyperion 10 platform. However, some analysts remain cautious, issuing a hold recommendation due to concerns about execution risks and the company's ability to maintain its autonomy.
Upcoming updates, including the March 9, 2026, quarterly report, will provide further details on production forecasts, construction progress in Thailand, and regulatory developments for autonomous driving in the second half of 2026, all of which will impact Hesai's autonomy and growth plans.
Hesai’s production push and new contracts reinforce its dominance in the lidar market and its commitment to autonomy. The company’s growth plans hinge on successful factory expansions and meeting delivery commitments, ensuring it maintains its autonomy and leadership in the market. Investors will be watching closely as regulatory and operational updates unfold in the coming months, assessing Hesai's ability to maintain its autonomy and drive growth.
