Hesai Group (HSAI), a leading automotive lidar technology company, saw its stock soar by 5.28% in Tuesday's pre-market trading session. This surge can be attributed to the company's announcement of a deepened partnership with Chinese automaker BYD (BYDDF), which will result in Hesai's lidar technology being integrated into more than 10 BYD models set for mass production in 2025.

According to the news, BYD, a prominent player in the new energy vehicle market, plans to equip all its models with its advanced driver assistance system (ADAS) called "God's Eye." Hesai's lidar technology will be a crucial component of two variants of this system, enabling navigation on autopilot (NOA) capabilities for both city and highway driving scenarios.

The partnership between Hesai and BYD reflects the growing demand for lidar technology in the Chinese automotive market. As reported, the lidar installation volume in China exceeded 1.5 million units in 2024, more than doubling the previous year's figure. Hesai, which has already secured over 100 design wins across 22 automakers, aims to increase its annual production capacity to over 2 million units in 2025, positioning itself as a key player in this rapidly expanding market.