The development marks a notable step in the evolution of lidar (Light Detection and Ranging), a core sensing technology used in autonomous and advanced driver-assistance systems to map environments using reflected light. By adding colour recognition to spatial sensing within a single device, Hesai aims to help vehicles better interpret real-world signals, such as distinguishing between red and green traffic lights with greater reliability.
According to the company, the new EXT lidar system is powered by its proprietary Picasso chip and represents the first integrated solution of its kind in the industry. Co-founder Sun Kai announced at a Shanghai event that the product is scheduled for mass production later this year, with commercial deployment expected in flagship vehicle models by 2027.
CEO David Li positioned the innovation within a broader shift in China’s automotive sector, which he described as moving away from aggressive cost-cutting toward more value-oriented technological development. He argued that excessive focus on price competition can limit innovation, reducing long-term progress in safety and performance.
Hesai already plays a major role in the global lidar supply chain, providing systems to leading Chinese electric vehicle manufacturers including Li Auto, Xiaomi, and BYD. Industry data cited from the Gasgoo Automotive Research Institute indicates the company held over 40% of the market in 2025. Internationally, it also supplies lidar components used in Nvidia’s advanced driver assistance systems, which are expected to be integrated into vehicles from brands such as Mercedes.
Despite this growth, lidar adoption remains limited globally. Data from the China Association of Automobile Manufacturers suggests that only about 3% of vehicles worldwide currently use the technology, as some automakers continue to question its necessity. Tesla, for instance, has opted for camera-based systems, while Xpeng has reportedly moved away from lidar in favour of AI-driven vision systems in newer models.
Hesai argues that the technology still holds significant expansion potential, particularly as autonomous systems become more sophisticated. The company believes the addition of colour detection could enhance machine understanding of complex driving environments, contributing to safer decision-making.
Beyond automotive applications, Hesai is also exploring broader opportunities in physical artificial intelligence. One such initiative is “Kosmo,” a handheld 3D scanning device shaped like a wine bottle, designed to capture real-world spatial data for creating digital twins of physical environments. The tool is intended to support the development of advanced robotics and embodied AI systems, including humanoid robots, by improving how machines perceive and replicate real-world spaces. The company has not yet announced a commercial release timeline for Kosmo.
The announcement comes ahead of the upcoming major international auto show in Beijing, where more than 100 automotive brands are expected to present new technologies, underscoring intensifying competition in next-generation vehicle intelligence systems.