TL;DR
Chinese lidar maker Hesai said it will raise its 2026 production target from 2 million to 4 million units, citing rising demand in automotive and robotics. The move follows Luminar’s recent Chapter 11 filing and comes amid pricing pressure and geopolitical scrutiny of Chinese lidar firms.
What happened
At CES 2026, Hesai announced it plans to scale production to as many as 4 million lidar sensors in 2026, up from an earlier target of 2 million and well above the roughly 1 million units the company produced in 2025. The company attributed the ambitious increase to accelerating orders from carmakers and robotics developers, and said many new Chinese EVs are adopting multiple lidar units per vehicle. The statement came a month after U.S. lidar leader Luminar filed for Chapter 11 bankruptcy and is seeking a sale of its business, a development that removes a major competitor from the market at least temporarily. Hesai also noted it holds millions of orders for its ATX sensor and is supplying automakers and autonomy firms, even as it faces U.S. government allegations of ties to China’s military industry that the company disputes.
Why it matters
- Consolidation: Luminar’s bankruptcy reshapes competitive dynamics and market share opportunities.
- Cost pressure: Lower prices from China-based suppliers are changing margins in the global lidar market.
- Automotive adoption: Multiple sensors per vehicle in China could substantially expand addressable demand.
- Geopolitics and oversight: U.S. regulatory scrutiny of Chinese suppliers may influence global procurement and partnerships.
Key facts
- Hesai raised its 2026 production target to as many as 4 million lidar units, up from 2 million.
- The company produced just over 1 million units in 2025, per its statement.
- Hesai announced the plan at CES 2026 and cited rising demand in automotive and robotics sectors.
- Luminar filed for Chapter 11 bankruptcy one month before Hesai’s announcement and is seeking to sell its lidar business.
- Hesai says lidar is installed in about 25% of new electric cars sold in China (company claim).
- Hesai reports having 24 automotive customers, including a ‘top European’ automaker, and 4 million orders for its ATX sensor.
- The company displayed applications such as a robotic lawnmower and a robotic dog using its JT series lidar at CES.
- Hesai claims it helped reduce lidar costs by roughly 99.5% over eight years (company claim).
- U.S. officials have alleged close ties between Hesai and China’s military industry; Hesai disputes those allegations.
What to watch next
- Whether Hesai can convert its ATX orders into delivered units at scale — not confirmed in the source.
- The outcome of Luminar’s Chapter 11 process and any sale of its lidar business, and how that affects competition — not confirmed in the source.
- How automotive programs outside China respond to lower-cost lidar offerings and whether planned integrations hold — not confirmed in the source.
Quick glossary
- LiDAR: A sensing technology that uses laser pulses to measure distances and produce 3D information about surrounding objects and terrain.
- Chapter 11 bankruptcy: A U.S. legal process allowing firms to restructure debts while continuing operations under court supervision, often paired with attempts to sell assets.
- Addressable market: The portion of the total market that a company can realistically serve with its products or services.
- Autonomous vehicle: A vehicle equipped with systems—such as sensors and software—that enable it to navigate and operate with limited or no human input.
- Robotics: A field combining hardware and software to create machines that can perform tasks autonomously or semi-autonomously.
Reader FAQ
Did Hesai actually produce 4 million sensors in 2025?
No. Hesai said it produced just over 1 million units in 2025 and plans to target up to 4 million in 2026.
Is Luminar shutting down completely?
Luminar filed for Chapter 11 and is seeking a sale of its lidar business; the company is not expected to continue operating once a bankruptcy plan is approved, per the source.
Are U.S. sanctions or restrictions affecting Hesai’s business?
The U.S. government has accused Hesai of ties to China’s military industry and the company disputes that allegation; further impacts are not confirmed in the source.
Will the wider global auto market adopt lidar at the same rate as China?
The source notes automotive adoption has been stronger in China and that uptake outside China has been inconsistent; broader global adoption patterns are not confirmed in the source.
Chinese lidar maker Hesai announced plans on Monday to double its production capacity from 2 million units to 4 million units this year, as it looks to corner the global…
Sources
- China’s Hesai will double production as lidar sensor industry shakes out
- Lidar Company to Surpass 2 Million Units in Cumulative …
- Hesai Delivers 1.6M+ LiDAR Units Last Yr, Doubling …
- Hesai to Exhibit at CES 2026 with Cutting-Edge ADAS and …
Related posts
- How Y Combinator reshaped venture norms to let founders stay in control
- Open-source 8-channel BCI board with ESP32, ADS1299 and OpenBCI GUI
- Palo Alto Linked to Possible $400M Bid for Israeli Startup Koi — Unconfirmed