Hesai Group (HSAI) stock surged 5.01% in pre-market trading on Tuesday after announcing a strategic collaboration with Outsight and Embotech AG to deliver cutting-edge lidar technology and perception software for Embotech's Automated Vehicle Marshalling (AVM) systems deployed at BMW manufacturing facilities.

The partnership will see Hesai provide its industry-leading lidar sensors, renowned for accuracy and reliability, to act as the "eyes" for BMW's automated driving system known as Automated Driving In-Plant (AFW). This AVM system autonomously transports newly manufactured vehicles from assembly lines through quality testing to the final parking areas, streamlining logistics and eliminating the need for human drivers.

Outsight will supply its advanced lidar software platform to track vehicles and obstacles within BMW's factories, integrating with Hesai's sensors and Embotech's autonomous driving expertise. The integrated solution is already operational in three BMW plants in Germany, marking an initial global rollout to facilities across Europe and North America.