A major shift is unfolding in the global lidar industry as Chinese manufacturers move aggressively to scale, following financial stress among Western rivals.
Chinese lidar maker Hesai announced plans to double its annual production capacity from 2 million units to 4 million units in 2026. This follows output of over 1 million units in 2025.
The expansion comes just weeks after U.S.-based Luminar filed for Chapter 11 bankruptcy. Luminar is not expected to continue operations and is seeking to sell its lidar business.
Hesai, listed on Nasdaq and the Hong Kong exchange, said accelerating demand from the automotive and robotics sectors is driving growth. At CES 2026, the company said lidar is now used in 25% of new electric vehicles sold in China, with many cars expected to integrate 3 to 6 sensors each.
Hesai reported 24 automotive customers, including a top European automaker, and confirmed 4 million orders for its latest ATX lidar sensor.
Outside China, the automotive lidar market has proven unstable. Luminar’s deals with Volvo, Polestar, and Mercedes-Benz collapsed after delays and cost overruns. Volvo, which had planned to buy 1.1 million sensors, ultimately purchased around 10,000.
Hesai is also targeting robotics. At CES, it showcased robotic lawnmowers and a robotic dog using its JT series sensors and hinted at humanoid robot integration. The company supplies lidar to autonomous firms including Pony AI, Motional, WeRide, and Baidu.
Hesai said it has cut lidar costs by 99.5% in 8 years, a pricing shift that Luminar cited as a key factor in its collapse.
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