Hesai Group Announces 4‑Million‑Unit Production Cap in 2026, Strengthening Market Position

On 5 January 2026, Hesai Technology (NASDAQ: HSAI; HKEX: 2525) confirmed a decisive expansion of its lidar manufacturing footprint, pledging to double annual production capacity from 2 million to more than 4 million units in 2026. The move, unveiled during the Consumer Electronics Show (CES) in Las Vegas, follows the company’s historic milestone in 2025 when it became the first automotive lidar firm to surpass 2 million cumulative deliveries.

Scale‑up Driven by ADAS and Robotics Demand

The new capacity will be delivered through Hesai’s expanded “Galileo” factory in Thailand, an in‑house manufacturing hub that has been pivotal in meeting surging orders from automotive, robotics, and mobility‑as‑a‑service (MaaS) customers. The company cites “accelerating demand for ADAS and robotics lidar” as the principal catalyst for the expansion, underscoring the broader industry shift toward higher‑resolution sensors in both passenger vehicles and autonomous freight fleets.

Production Plan and Execution

  • Current capacity (2025): 2 million units per year
  • Target capacity (2026): > 4 million units per year
  • Key facilities: Galileo factory (Thailand), additional production lines slated for rollout in 2026
  • Supply chain: Integrated component sourcing, leveraging domestic Chinese suppliers and strategic partnerships with Tier‑1 electronics manufacturers

The company’s leadership emphasized that the capacity increase will be phased, with a focus on maintaining quality and yield as volumes rise. “Our production lines are already operating at near‑maximum efficiency, and the new investment will allow us to double output without compromising the reliability that our partners expect,” stated a Hesai spokesperson.

Market Impact and Competitive Dynamics

Hesai’s decision comes at a time when the lidar market is consolidating. While rivals such as Velodyne, Luminar, and Waymo’s in‑house solutions continue to compete on price, resolution, and integration, Hesai’s scale advantage positions it to secure larger contracts with automotive OEMs and fleet operators. The company’s focus on both ADAS and robotics lidar gives it a diversified revenue base, reducing dependence on any single application segment.

Analysts note that the jump to 4 million units will likely translate into a significant share of the global lidar supply chain, potentially allowing Hesai to negotiate more favorable terms with component suppliers and to drive down per‑unit costs through economies of scale.

Strategic Partnerships

In parallel with the production expansion, Hesai announced a partnership with MOVIN, a company specializing in 3D motion‑capture technology. The collaboration aims to integrate Hesai’s lidar sensors into MOVIN’s systems, enabling advanced marker‑less motion capture that is less sensitive to lighting and occlusion. This partnership is expected to open new revenue streams in the entertainment, gaming, and industrial robotics markets, where high‑precision motion data is increasingly in demand.

Forward‑Looking Outlook

With a 4‑million‑unit production target, Hesai is set to capture a larger slice of the rapidly growing autonomous vehicle and robotics markets. The company’s investment in manufacturing scale, combined with strategic alliances such as the one with MOVIN, signals a deliberate shift toward becoming the backbone of the next generation of autonomous systems. Analysts project that, if executed as planned, the expansion could yield a substantial boost in revenue and profitability, positioning Hesai as a key player in the global lidar ecosystem.