Gasgoo Munich-Hesai Technology announced on May 19, 2026, alongside the release of its unaudited first-quarter financial results, that it has become a strategic LiDAR partner for Mercedes-Benz and has been named a supplier for its Level 3 autonomous driving models, according to Gasgoo.
Under the new supply agreement, Hesai will provide core perception hardware for Mercedes-Benz’s Level 3 vehicle projects in both Europe and China. The required production capacity will be secured by Hesai’s newly commissioned "Galileo" manufacturing center in Thailand.
Image source: Hesai Technology
Financial data reveals the company has achieved consecutive profitability. In the first quarter of 2026, Hesai generated revenue of 680 million yuan, up 29.6% year-on-year. Net income attributable to shareholders reached 18.3 million yuan, marking the fourth consecutive quarter of profitability under GAAP standards. On a non-GAAP basis, net profit jumped 452.9% to 47.7 million yuan. In terms of shipments, total LiDAR deliveries for the quarter hit 471,723 units — a 140.9% surge from a year earlier. Of these, ADAS LiDAR shipments climbed 141.9% to 353,441 units, while robot LiDAR deliveries rose 137.8% to 118,282 units.
Regarding business structure, Hesai announced a strategic elevation, dividing its operations into two segments: "LiDAR Business" and "Strategic Growth Initiatives" (SGI), with a focus on the Physical AI sector. SGI is expected to start contributing revenue in the second quarter of 2026, with projected net income of about 100 million yuan for the full year. On the competitive front, data from Gasgoo Institute shows Hesai held a market share of over 55% for main LiDARs in March 2026, ranking first in the industry for 14 consecutive months; according to the "2026 Global Automotive Market Report" by Yole Group, Hesai ranked first globally in ADAS main LiDAR shipments with a 43% share. Looking ahead, the company projects net income for the second quarter of 2026 to land between 850 million and 900 million yuan, representing year-on-year growth of approximately 20% to 27%.
