Shares of Hesai Group (NASDAQ:HSAI) experienced a price increase during morning trading on Wednesday after the company announced a significant distribution collaboration with Grab Holdings Ltd. (NASDAQ:GRAB). However, most of these gains were relinquished during the ongoing trading session.
Under the terms of the agreement, Grab will serve as Hesai’s exclusive distributor for lidar sensors throughout the Southeast Asian region. This entails Grab taking responsibility for sales operations, customer engagement, and marketing activities related to Hesai’s lidar products across multiple markets in Southeast Asia.
This distribution partnership is strategically aimed at broadening the availability and implementation of lidar hardware technologies tailored for robotics, automation, and autonomous system applications. By leveraging Grab’s extensive logistics network and existing commercial relationships in the region, Hesai aims to significantly extend its market penetration and scalability.
Southeast Asia is witnessing increasing demand for automation technology, particularly in sectors such as manufacturing, logistics, and urban mobility. The emphasis on automation within these industries is driving the need for sophisticated sensing and perception systems, with lidar technology being central to these developments.
Lidar technology equips machines with the capacity to assess depth accurately and navigate complex environments by generating precise three-dimensional spatial maps. This capability is indispensable in fields like robotics, mapping, and autonomous transportation systems.
According to Anthony Tan, Group CEO and co-founder of Grab, the deal represents more than an enhancement of the company’s autonomous mobility and mapping functions. He emphasized that expanding access to advanced lidar technology throughout Southeast Asia provides critical "eyes" for robotics, allowing machines to perceive and maneuver safely. This supports the broader goal of making three-dimensional intelligence accessible and scalable across diverse industries in the region.
From Hesai’s perspective, the collaboration is expected to expedite the widespread adoption of lidar technology in commercial applications, particularly where there is demonstrated demand in robotics related to manufacturing, logistics, and services.
David Li, CEO and co-founder of Hesai, highlighted that this partnership will allow the company to better tailor its lidar solutions to local market requirements, thereby facilitating increased uptake across various robotics applications.
Regarding market activity, Hesai’s stock was trading modestly higher by 0.29% at $24.04, while Grab’s shares declined by approximately 1.99% to $4.18 at the time of reporting.