Opinions expressed by Entrepreneur contributors are their own.
You’re reading Entrepreneur Asia Pacific, an international franchise of Entrepreneur Media.
In a time of relentless technological pursuits, where each sector experiences shockwaves of change, the question remains: How can a tech startup not only survive but also lead? All eyes are on a company that has conquered fierce competition, surpassing more than 100 direct competitors, and has set a new direction for leadership. Hesai, a startup that began in the congested lidar market, has emerged as the world’s premier lidar company, distinguished by robust sales, award-winning innovation, and dedication to R&D. The creation of the new Maxwell Innovation Center embodies Hesai’s commitment to manufacturing optimization. This is a look into Hesai’s journey from obscurity to prominence — in a market where many enter but few lead.
The Leap of Faith:
Hesai’s (NASDAQ: HSAI) journey is marked by a clear vision and innovative approach. The company, founded in Silicon Valley by three visionaries—David Li, Kai Sun, and Shaoqing Xiang—all alumni of prestigious U.S. universities, including the University of Illinois and Stanford University, set out with a distinct goal: to develop technologies that would enhance safety and save lives.
They recognized the potential of lidar technology beyond its high-end applications, identifying a significant market opportunity. Hesai has since focused on creating products suitable for consumer applications, such as ADAS and autonomous mobility vehicles, aiming to transform vehicles, with accessible, efficient, and mass-market-ready products.
The key to this transition was an innovative strategy that integrated manufacturing intricacies directly into the research and development phase. This integration proved crucial, cultivating a line of sensors that established new standards in reliability, power, and affordability—outstripping competitors and directing lidar technology toward a new horizon of widespread automotive application.
David Li, co-founder and CEO, emphasizes that the synergies between production and research and development are a cornerstone of the company. “At Hesai, manufacturing is not just a subsequent step but a core aspect of R&D, ensuring the high-caliber mass production of lidar,” he notes. Hesai Technology has always believed that only by closely combining manufacturing and R&D can the product iteration speed be maximized, and ensure that lidar emerged as a promising technology.
With over 300,000 units delivered to customers, Hesai’s products have become embedded in iterative improvements from continuous learning and innovation, underscoring the company’s commitment to excellence and industry leadership.
Road Safety Revolution
Hesai’s lidar technology is powering the global autonomous mobility revolution to safely drive millions of autonomous vehicles around the world — from the bustling streets of Asia to the highways of North America and the car-centric cities of Europe. Hesai’s technology is pivotal in advancing the autonomous driving industry and smart city initiatives worldwide by equipping a wide range of vehicles, including Meituan’s delivery fleet in China and Baidu Apollo’s robotaxis.
Hesai has further strengthened its commitment to innovation, making such advances more accessible, significantly improving road safety for all. The company has succeeded in condensing what was once a six-figure technological product into an affordable piece of safety, reducing the price from $100,000 to 50 times less. It has just won a 2024 CES innovation award for its new flagship sensor, AT512, with the highest resolution in the industry.
Hesai’s 5 Keys to Success
As Hesai climbs to the peak of the lidar industry, there are a few key factors that contribute to the company’s success:
1. Clear Vision: Hesai’s Silicon Valley-based culture of vision and innovation allowed top leadership to see the bigger picture. They understood that the real opportunity for lidar lies not in expensive custom solutions, but in mass-market products.
2. Customer-Centric Design: Hesai maintains a clear and unrelenting focus on building the right products for their end customers. They understood that a completely different product design and a tightly integrated supply chain were required to serve customer needs at these scales.
3. Specialization: Hesai chose to be the best at one thing- mass-market-ready lidar sensors. This dedication to being the best is ingrained in every facet of their product development, from start to finish.
4. Humility: Hesai understood how important it was not to get too proud midway through. They didn’t bask in recognition and awards before having real mass-market products and demonstrating market value.
5. Building a Winning Team: Hesai understood the importance of gathering sufficient and high-quality resources for the real market. They invested in the acquisition of capital, talent, and infrastructure needed to satisfy the mass consumer market.
Hesai’s story is a testament to the power of a well-defined vision, a commitment to customer needs, and a focus on innovation at every step. It serves as an invaluable case study for startups all over the world, showing how strategic insight, vehicle-centric design, and a relentless pursuit of innovation can drive a startup to global leadership.
