PALO ALTO, Calif. - Hesai Technology (NASDAQ:HSAI), a prominent player in lidar safety technology, has secured an exclusive agreement with Baidu, Inc. (NASDAQ:BIDU) to supply long-range lidar for its upcoming robotaxi platform, Yichi 06. The deal is expected to play a significant role in the Chinese robotaxi market, which is forecasted to grow substantially in the coming years.
The partnership between Hesai and Baidu, a major internet technology company and one of the largest robotaxi service providers globally, is poised to bolster the widespread adoption of robotaxi services in China. With plans to deploy 100,000 robotaxi vehicles, the lidar deal is valued between $200 million and $300 million.
Industry forecasts from Pacific Securities project the Chinese robotaxi market to reach over $162.6 billion by 2025 and surge to $403.6 billion by 2030. As the market expands, demand for lidar technology, known for enhancing sensor performance and safety in autonomous vehicles, is expected to rise in tandem.
Baidu's current fleet of Apollo Go 5th generation robotaxis, which operate in Wuhan and other Chinese cities, are already equipped with Hesai's Pandar series high-performance lidar. The upcoming sixth-generation Apollo Go vehicles, touted for their 60% cost reduction to approximately $28,500, are set to hit the market this year.
Hesai's dominance in the global robotaxi lidar market was highlighted in Yole's "Lidar for Automotive 2024" report, which credited the company with a 74% market share in 2023. The report also noted that nine out of the top ten L4 autonomous driving companies use Hesai's lidar technology.
David Li, CEO & Co-Founder of Hesai, expressed that advanced sensors like lidar are crucial for the advancement of autonomous driving. Hesai, with a lidar shipment volume surpassing 380,000 units in the first quarter of the year, continues to expand its global footprint, serving customers in over 40 countries.
The company's comprehensive lidar solutions cater to a variety of applications, including ADAS and autonomous vehicle fleets, as well as robotics, such as delivery and logistics robots in restricted areas. Hesai's success is underpinned by robust R&D capabilities in optics, mechanics, electronics, and software, and a commitment to close collaboration with customers worldwide.
This article is based on a press release statement.
InvestingPro Insights
As Hesai Technology (NASDAQ:HSAI) cements its pivotal role in the burgeoning robotaxi market through its strategic partnership with Baidu, its financial health and market valuation come into focus. With a market capitalization of $31.94 billion USD, Hesai's financial position appears robust. One of the key InvestingPro Tips highlights that the company holds more cash than debt on its balance sheet, indicating a strong liquidity position that could support its ambitious expansion plans in the robotaxi sector.
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InvestingPro's data also showcases a revenue growth of 6.77% over the last twelve months as of Q1 2024, underlining the company's ability to expand its top-line in a competitive market. With gross profit margins at a healthy 51.71%, Hesai demonstrates its capacity to maintain profitability amidst its growth trajectory.
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