US Lidar Maker Luminar Prepares To Tap China's Growing Thirst For Smart Vehicles
Author: Anusuya Lahiri | April 18, 2023 10:56am
- U.S. lidar maker Luminar Technologies, Inc (NASDAQ:LAZR) looks to launch 1 million Luminar-equipped cars on China roads by 2028.
- Luminar is working with TPK to produce up to 600K annual capacity locally, CEO Austin Russell tweeted from Auto Shanghai.
- China is a coveted place for foreign automakers and suppliers with its 500 million drivers. China accounts for much of Tesla Inc's (NASDAQ:TSLA) rise, which accounts for more than half of its deliveries and has become a significant manufacturing hub for the EV behemoth.
- Also Read: China's New EV Dynamics: BYD Leads EV Race While GM, Honda, Nissan Trail
- People in China are ready to pay for smarter cars, TechCrunch cites McKinsey & Company.
- Luminar tapped Taiwan's TPK Holding Co, Ltd, a key touch-screen supplier to Apple Inc (NASDAQ:AAPL) and Tesla, to "build and operate an additional high-volume factory driven by rapidly growing demand for Luminar in Asia," the company announced at Auto Shanghai.
- The factory adds to its existing manufacturing bases across the U.S., Thailand, Mexico, and China.
- At the initial stage, the new TPK factory will likely produce up to 600,000 lidar sensors annually to serve clients like Mercedes-Benz Group AG (OTC: DMLRY), which just signed a "multibillion" deal to use Luminar lidars in its next-gen vehicles.
- Most of the production vehicle models equipped with Luminar will cater to the Chinese market.
- At Auto Shanghai, Volvo revealed that its all-electric SUV EX90 Excellence, which will come with Luminar's lidars, will first hit the shelves in China.
- TPK also plans to buy Luminar stock to reflect its "belief in Luminar's potential." Luminar has lost over 80% of its value since peaking at $37 in February 2021.
- Price Action: LAZR shares traded higher by 1.08% at $6.07 on the last check Tuesday.
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