Mercedes-Benz Relies on Chinese Components to Compete in EVs

KatadataOTO – China is known as one of the pioneering countries in the automotive field and its supporting technology. This has given it an edge in the increasingly intense competition of the electric car era.

The advanced technology from China has also attracted the attention of foreign brands, including the German luxury car manufacturer, Mercedes-Benz. 

A report received by Reuters indicates that Mercedes-Benz will use LiDAR sensors from Hesai Group, the largest LiDAR manufacturer in China.

Interestingly, this is the first time a European brand has implemented Chinese-made technology for models to be sold outside of China.

Photo : Mercedes-Maybach

Previously, other European brands have relied on Hesai as a LiDAR supplier, but only for products in China.

This decision had actually been considered by Mercedes-Benz some time ago. However, geopolitical instability was a reason for them to postpone the plan.

Besides its sophistication, Mercedes-Benz chose Hesai because its costs are relatively lower and it can produce in large quantities.

Hesai is still keeping its newest client a secret, but has merely announced its largest partnership until 2030.

“I assume that the brand has looked for alternatives comparable to Hesai in terms of price and performance, but couldn't find any,” said Andrew Fan, Chief Financial Officer of Hesai, quoted from Reuters, Thursday (13/03).

Anticipating increasing demand, Hesai has expanded its production line in China, enabling it to produce two million LiDAR units in 2025.

A Glimpse into LiDAR Sensors

LiDAR stands for light detection and ranging, a sensor that can detect light and range using laser beams.

Photo : Car250

Its function is to measure distance and movement in an environment in real time. LiDAR has many functions, one of which is to safely support the operation of autonomous vehicles.

In vehicles, LiDAR can generate three-dimensional map data, as well as provide complete road and environmental navigation.

Chinese manufacturers often embed LiDAR in their products, such as BYD and GAC Aion. However, in Indonesia, this feature is absent due to several considerations, such as price.