00:43 21-05-2026

Mercedes-Benz Selects Hesai Group as LiDAR Supplier for Level 3 Autonomous Driving

Mercedes-Benz partners with Hesai Group to supply LiDAR sensors for Level 3 autonomous vehicles. The deal covers Europe and China, with production in Thailand.

Mercedes-Benz has selected Chinese company Hesai Group as a strategic supplier of LiDAR sensors for its Level 3 autonomous vehicles. According to a Hesai press release, the agreement covers Mercedes programs in Europe and China, and the sensors will be produced at the new Galileo facility in Thailand.

This move is an important step in Mercedes' development of conditional autonomous driving. Level 3 means the car can take over control in predefined conditions, but the driver must be ready to intervene when prompted. Mercedes is already considered one of the most active European automakers in this field, thanks to its production Drive Pilot system.

Hesai specializes in 3D perception and is among the largest LiDAR suppliers by shipment volume. The company is listed on the Nasdaq and the Hong Kong Stock Exchange. Manufacturing in Thailand should help Hesai serve global automakers beyond China, which is particularly relevant given Western attention to Chinese components for autonomous driving.

For buyers, the key takeaway is simple: LiDAR helps the car more accurately "see" its surroundings, making it a key element for advanced driver assistance and Level 3 systems. However, the sensor alone doesn't make the vehicle fully autonomous; the final performance depends on the entire combination of cameras, radar, software, maps, and operational limitations.