Chinese lidar manufacturer Hesai announced plans at CES 2026 to more than double its annual production capacity to over 4 million units in 2026, up from a previous capacity of 2 million units. This move is driven by surging demand for its advanced driver-assistance systems (ADAS) and robotics sensors. The company has already secured orders for over 4 million units of its new ATX lidar, with mass production scheduled to begin in April 2026.
The production ramp-up coincides with a major shake-up in the lidar industry, highlighted by the Chapter 11 bankruptcy filing of competitor Luminar Technologies in December 2025. Luminar's financial distress was accelerated by the loss of a major contract with Volvo. Hesai's expansion is seen as an aggressive strategy to solidify its leading market share as the industry consolidates.