Baidu Selects Hesai as Exclusive Long-Range Lidar Provider for Next-Generation Robotaxis

Rhea-AI Summary

Hesai Technology (Nasdaq: HSAI), a global leader in lidar safety technology, has been chosen by Baidu (NASDAQ: BIDU) as the exclusive long-range lidar supplier for its next-generation robotaxi platform Yichi 06. This deal, estimated at $200-300 million, is based on Baidu's plans to deploy 100,000 robotaxi vehicles in China. The Chinese robotaxi market is projected to reach $162.6 billion in 2025 and $403.6 billion in 2030.

Hesai dominated the global robotaxi lidar market in 2023 with a 74% share of the $124 million market. The company's total lidar shipment volume has exceeded 380,000 units as of Q1 2024. Hesai's success is attributed to its high-performance lidar technology, which is used by nine of the top ten L4 autonomous driving companies globally.

Positive

• Exclusive long-range lidar supplier for Baidu's next-gen robotaxis
• Estimated deal value of $200-300 million
• 74% market share in global robotaxi lidar market
• Total lidar shipment volume exceeds 380,000 units
• Used by 9 out of 10 top L4 autonomous driving companies globally

Negative

• None.

Insights

Financial Analyst

The exclusive lidar supply agreement between Hesai Technology and Baidu for its next-generation robotaxi platform is a significant milestone for both companies. From a financial perspective, this deal is estimated to be worth between $200 million and $300 million, a substantial sum that will positively impact Hesai's revenue streams. Considering the projected growth of the Chinese robotaxi market, slated to exceed $162.6 billion by 2025 and $403.6 billion by 2030, this agreement positions Hesai favorably in a rapidly expanding sector. Investors should note the strategic advantage and potential revenue growth from this deal. However, it is also essential to consider the risks associated with the dependency on a single large client like Baidu, which could impact Hesai's revenue volatility.

Additionally, the reduction in costs for Baidu's sixth-generation Apollo Go vehicles, now costing around $28,500, suggests a more scalable deployment strategy, potentially increasing the volume of lidar units required and further boosting Hesai's sales. The expansive market opportunity in autonomous driving and Hesai's dominance, holding a 74% market share in robotaxi lidar, underscore a strong growth trajectory but come with competitive pressures and the need for continuous innovation to maintain leadership.

Tech Expert

Hesai Technology's selection as the exclusive lidar provider for Baidu's new robotaxi platform is a testament to the company's leadership in lidar technology. Lidar, which stands for Light Detection and Ranging, uses laser pulses to create detailed 3D maps of the environment. This technology is important for autonomous vehicles as it enhances their capability to perceive surroundings accurately, ensuring safety and reliability. Hesai's lidar, already used in Baidu's fifth-generation Apollo Go robotaxis, will continue to play a pivotal role in enabling these vehicles to navigate complex urban environments.

A key development here is the reduction in vehicle costs for Baidu's sixth-generation robotaxis, down by 60% compared to the previous generation. Lower costs could mean more widespread adoption, leading to higher lidar unit sales. Hesai's strong presence in the global market, with customers in over 40 countries and a shipment volume exceeding 380,000 units, positions it well to capitalize on this growing demand. However, it will be important for Hesai to continue innovating and improving lidar performance to stay ahead of competitors in this fast-evolving industry.

Market Research Analyst

The partnership between Hesai Technology and Baidu is set against the backdrop of a rapidly growing autonomous driving market in China. According to Pacific Securities, the Chinese robotaxi market is expected to be valued at $403.6 billion by 2030. This massive market potential is driven by advancements in autonomous vehicle technology and increasing acceptance of robotaxis as a viable transportation solution.

For retail investors, this deal signifies Hesai's strategic positioning in a lucrative market. Baidu's commitment to deploying 100,000 robotaxis equipped with Hesai's lidar underscores the high demand for reliable sensor technology in autonomous vehicles. Investors should keep an eye on the broader market trends, such as regulatory developments and consumer adoption rates, which could influence the success of Hesai and its peers. The adoption of lidar technology by nine out of the top ten L4 autonomous driving companies globally also highlights the critical role Hesai plays in the industry, reinforcing its market leadership and growth potential.

PALO ALTO, Calif., July 18, 2024 /PRNewswire/ -- Hesai Technology (Nasdaq: HSAI), the global leader in lidar safety technology for automotive and robotics applications, announced that they have been selected by Baidu, Inc. (NASDAQ: BIDU) to be the exclusive long-range lidar supplier for its next-generation robotaxi platform Yichi 06. Baidu is an internet tech giant who is also one of the world's largest robotaxi service providers.

According to industry analysts, this lidar deal is worth an estimated $200-300 million based on Baidu's plans to deploy 100,000 robotaxi vehicles in China. It's expected to be the first widespread application of robotaxi in the Chinese market.

According to forecasts by Pacific Securities, the Chinese robotaxi market is expected to exceed $162.6 billion, in 2025 and $403.6 billion in 2030, making it one of the largest market opportunities across the autonomous driving landscape. As a result, lidar demand will continue to grow as more autonomous vehicle companies seek better sensor performance, safety and perception.

Baidu's Apollo Go 5th generation robotaxis, which are currently in operation in Wuhan and other cities in China, already use Hesai's Pandar series high-performance lidar as the main lidar. Just this year, the sixth-generation Apollo Go autonomous vehicles will also be deployed to the market. According to Baidu, the 6th generation vehicle's cost has dropped by 60% compared with the previous generation, to a pricepoint of only around $28,500.

According to Yole's "Lidar for Automotive 2024" report, Hesai dominated the global robotaxi lidar market in 2023, comprising an impressive 74% share of the current $124 million market. Among the top ten L4 autonomous driving companies globally, nine of them, including Zoox, NVIDIA and Nuro, use Hesai's high-performance lidar. Building off the company's success, Hesai's total lidar shipment volume has exceeded 380,000 units as of the first quarter of this year.

"The autonomous driving industry has rapidly evolved in recent years and today's surge of autonomous driving in China is a testament to the breakthroughs we've made in smart driving," said David Li, CEO & Co-Founder of Hesai. "Advanced sensors like lidar are accelerating the adoption of autonomous driving."

Hesai has already established a strong global business presence in the US, Europe and Asia with customers spanning over 40 countries, extending support and engineering resources across the globe to facilitate close collaboration with customers, and further enabling safe and reliable intelligent driving worldwide.

About Hesai
Hesai is the global leader in three-dimensional light detection and ranging (lidar) solutions. The Company's lidar products enable a broad spectrum of applications across passenger and commercial vehicles with advanced driver assistance systems (ADAS) and autonomous vehicle fleets (autonomous mobility). Hesai's technology also empowers robotics applications such as last-mile delivery robots and logistics robots in restricted areas. The Company's commercially validated solutions are backed by superior research and development capabilities across optics, mechanics, electronics, and software. Hesai integrates lidar designs with an in-house manufacturing process, facilitating rapid product development while ensuring high performance, consistent quality and affordability. Hesai has established strong relationships with leading automotive OEMs, autonomous vehicle, and robotics companies worldwide, covering over 40 countries. 

 

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SOURCE Hesai Technology

FAQ

What is the estimated value of Hesai's deal with Baidu for robotaxi lidar?

The deal between Hesai Technology (HSAI) and Baidu for long-range lidar supply for robotaxis is estimated to be worth $200-300 million, based on Baidu's plans to deploy 100,000 robotaxi vehicles in China.

What is Hesai's market share in the global robotaxi lidar market as of 2023?

According to Yole's 'Lidar for Automotive 2024' report, Hesai Technology (HSAI) dominated the global robotaxi lidar market in 2023 with a 74% share of the $124 million market.

How many lidar units has Hesai Technology (HSAI) shipped as of Q1 2024?

Hesai Technology (HSAI) reported that its total lidar shipment volume has exceeded 380,000 units as of the first quarter of 2024.

What is the projected value of the Chinese robotaxi market in 2030?

According to forecasts by Pacific Securities, the Chinese robotaxi market is expected to reach $403.6 billion in 2030, making it one of the largest market opportunities in the autonomous driving landscape.