Mercedes-Benz considered for several months and finally chose China’s Hesai lidar, which is low-cost and can be produced in large quantities.

People familiar with the matter revealed,Mercedes-Benz will develop smart driving vehicles equipped with Hesai lidar sensors for the global market.This is the first time a foreign automaker has used this Chinese-made technology in models sold outside China. However, trade tensions have intensified as the United States steps up efforts to restrict the use of Chinese parts and software solutions in vehicles developed by global automakers.

Mercedes has been considering the decision for months due to legal and geopolitical risks, people familiar with the matter said.

But Mercedes ultimately chose Hesai, China’s largest lidar manufacturer.Because Hesai’s lidar is low-cost and can be mass-produced.

Affected by this news and the positive impact of the financial report, Hesai Technology's US stocks have been rising since the opening of the market today, with an increase of more than 41% at one time.

Hesai CFO Fan Ande said in an interview after the financial report was released today,The automaker had to find an alternative that could compete with Hesai's products in performance and price, but it turned out there wasn't one.

European manufacturers have made Hesai a lidar supplier for their models sold in China. Hesai's lidar production capacity will exceed 2 million units this year to meet growing demand.

In addition, Hesai will also set up production lines overseas and put them into use as early as next year to provide services to Chinese customers who are worried about tariffs and logistics risks.