Mercedes-Benz will develop smart driving cars for global markets equipped with Lidar sensors According to Reuters, HESAI, the first time a foreign automaker sought to use such a Chinese manufacturing technology for models sold outside China.

The above development coincides with increasing tensions, as the US is stepping up efforts to limit the use of Chinese components and software on vehicles developed by global automakers.

At the same time, German automakers, which are a major problem in this case for the generally tested German economy, want to be as competitive as possible.

According to Reuters, Mercedes had been discussing for months until it was led to the decision due to legal and geopolitical risks.

Eventually, he chose Hesai, China’s largest Lidar sensor manufacturer, due to the low cost of production.

Hesai, whose competitors include American Luminar, announced on Monday an “exclusive multi -year” agreement on the supply of Lidar products to a European automaker that described only as top but did not name.

The Lidar It uses lasers to produce 3D images of the surrounding area of ​​a vehicle to help navigate around obstacles. Sensors are a component of many automatic driving systems developed by automakers.

HESAI’s financial director Andrew Fan told Reuters on Tuesday in an interview after the company’s quarterly profits that it was a decision by the other company. He also refused to name the company.

“I guess the automotive industry has to find alternatives that can be compared to HESAI products in terms of performance and price, but the result is that there is no one“, Fan said.

European manufacturers have used HESAI as a Lidar supplier for their models sold in China, he added.

HESAI is expanding two production lines in China to achieve an annual capacity of more than 2 million points this year to meet the growing demand, Fan said.

It also creates overseas production lines with the aim of launching them as early as next year to serve its customers outside China who are worried about tariff hazards and logistics dangers, Fan said. He refused to say where the factory would be abroad.

Demand for Lidar is increasing in the highly competitive Chinese market, as automakers are increasingly offering smarter features to affordable models.

On Monday, Leapmotor started sales of its B10 SUV with advanced smart driving mode of $ 17,950.

The car is equipped with Hesai’s Lidar ATX, which costs about $ 200, less expensive than seat belts and airbags, Fan said.