Mercedes-Benz plans to equip its smartly driven vehicles to the global market, including China’s HESAI technology light detection and range (LIDAR) sensors.
The move marks the first foreign automaker to incorporate lidar technology made in China into vehicles designed to be sold outside China.
The cooperation was set against the backdrop of escalating trade tensions, especially as the United States attempts to limit the use of Chinese components in vehicles produced by international manufacturers.
Mercedes’ decision was after months of consideration, taking into account the various legal and geopolitical risks involved.
Hesai said it has signed an “exclusive multi-year” contract with the undisclosed European original equipment manufacturer (OEM) to provide its ultra-long range of lidar technology for a comprehensive range of models including fuel vehicles and new energy vehicles.
This long-term cooperative project is expected to be extended until 2030.
Li Yifan, co-founder and CEO of Hesai, said: “This long-term collaboration is not only a high recognition of Hesai’s final performance and excellent quality, but it also demonstrates the strength of Hesai’s products.
“This fully demonstrates that our products can meet the strict standards of the world’s top automotive OEMs and demonstrates customers’ strong confidence in our future development. We are honored to leverage innovative lidar technology to power future mobility, which will play a key role in traditional fuel and electric vehicle platforms.”
To meet growing demand, Hesai is stepping up its manufacturing industry and expanding two production lines in China, the news agency reported.
The expansion will increase annual output by 2 million units this year.
Hesai will also set up production lines overseas with the goal of starting operations next year.
The move aims to address issues related to customer tariffs and logistics outside China.
Recently, Reuters reported that Mercedes-Benz signed an agreement with its engineering committee to initiate employee acquisitions and half-planned salary increases.
The move comes as automakers strive to improve their financial performance in a challenging industry environment.
“Mercedes-Benz’s choice of Hesai LiDar sensor for global smart cars” was originally created and released by Just Auto, a brand owned by GlobalData.
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