Mercedes-Benz plans to equip its smart driving vehicles, intended for global markets, with China’s Hesai Technology light detection and ranging (LiDAR) sensors, reported Reuters a person with direct knowledge.
The move marks the first foreign automaker incorporating Chinese-made LiDAR technology into vehicles intended for sale outside of China.
The collaboration is set against a backdrop of escalating trade tensions, particularly as the US seeks to limit the use of Chinese components in vehicles produced by international manufacturers.
The decision by Mercedes was made after several months of consideration, taking into account the various legal and geopolitical risks involved.
Hesai said it has signed an “exclusive multi-year” contract with an undisclosed European original equipment manufacturer (OEM) for the supply its ultra-long-range lidar technology for a comprehensive range of models, including both fuel vehicles and new energy vehicles.
This long-term cooperation project is expected to extend through 2030.
Hesai co-founder and CEO Li Yifan said: “This long-term cooperation project is not only a high recognition of the ultimate performance and excellent quality of Hesai, but also a powerful proof of the strength of Hesai’s products.
“This fully demonstrates that our products can meet the stringent standards of the world’s top automotive OEMs, and also demonstrate the customer’s firm confidence in our future development. We are proud to be able to harness the innovative LiDAR technology to power future mobility, which will play a key role in traditional fuel and electric vehicle platforms.”
To meet the growing demand, Hesai is ramping up its manufacturing efforts, expanding two production lines in China, reported the news agency.
The expansion will increase the annual production capacity of over two million units within this year.
Hesai is also establishing production lines overseas with the aim of commencing operations as early as next year.
This move is intended to address concerns related to tariffs and logistics for clients outside of China.
Recently, Reuters reported that Mercedes-Benz signed an agreement with its works council to initiate staff buy-outs and halve planned salary increases.
This move comes as the automaker strives to boost its financial performance amidst a challenging industry landscape.
“Mercedes-Benz selects Hesai LiDAR sensors for global smart cars” was originally created and published by Just Auto, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
