CICC has released a research report maintaining an "Outperform" rating on Hesai-W (02525). Recently, Hesai showcased its latest LiDAR technology at CES 2026. The company's delivery volume for 2025 exceeded 1.6 million units, with production capacity plans to double to 4 million units per year by 2026, and it has already secured design-wins for over 120 vehicle models. With the opening of domestic L3 pilot programs, the number of LiDAR units per vehicle is expected to increase, and Hesai's related solutions have secured their first passenger car design-win. The company is also actively expanding into emerging markets such as Robotaxis and robotics, collaborating with industry partners like NVIDIA. CICC's main views are as follows:
Recent company developments: In January 2026, Hesai Technology showcased its latest LiDAR technology achievements at CES 2026 and provided updates on its delivery volumes, production capacity plans, and strategic partnerships. Its mass production and delivery capabilities lead the industry, with steady progress on domestic and international production capacity. The company's full-year 2025 delivery volume surpassed 1.6 million units, and as of January 5th, it had secured mass production design-wins for over 120 vehicle models from 24 OEMs. The company plans to increase its annual production capacity from 2 million units in 2025 to 4 million units in 2026, achieving a doubling of capacity, with its Galileo factory in Bangkok, Thailand expected to commence operations in early 2027. The institution believes that with its ample order backlog and active expansion of domestic and international production capacity, the company is well-positioned to drive high growth in future shipments and revenue.
L3 models receive MIIT access approval, potential increase in LiDAR units per vehicle: On December 15, 2025, the Ministry of Industry and Information Technology (MIIT) approved the first pilot program allowing conditional L3 autonomous driving models to operate on roads in designated areas. The institution believes that L3 model penetration may accelerate, potentially increasing the number of LiDAR units per vehicle to 3-6; models like the 2026 Avatr 12 and Voyah Tashan are already standard-equipped with 4 LiDAR units. At CES 2026, Hesai showcased its new generation L3 automotive-grade LiDAR solution, composed of the ultra-long-range ETX LiDAR and the pure solid-state short-range FTX LiDAR, which has secured its first passenger car mass production design-win and is scheduled to commence mass production by the end of 2026 or early 2027.
The next wave of physical AI, including Robotaxis and robotics, emerges, with LiDAR becoming a key engine: Multiple global companies are accelerating the large-scale deployment of L4 autonomous vehicle fleets. Hesai has partnered with leading firms such as Motional, Baidu, DiDi, WeRide, and Pony.ai, and was selected by NVIDIA as a LiDAR partner for the "NVIDIA DRIVE AGX Hyperion 10 Platform." Furthermore, Hesai's JT series LiDAR is widely used in the robotics and industrial markets, with cumulative shipments exceeding 200,000 units, including applications in MOVA (lawn mowing robots), Vitapower (intelligent companion robots), and Rushi (3D spatial digitization equipment).
Risk warnings include technology iteration risks, orders falling short of expectations, intensifying industry competition, and customer pressure for price reductions.
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