China’s low-cost EVs to be fitted with lidar systems, usually reserved for luxury models

Intense competition, rapid tech advancement and falling costs allow the superior driving systems to be fitted into budget-price vehicles

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An exhibitor introduces a dynamic perception lidar which can be applied to self-driving systems and robots at the Zhongguancun Exhibition Centre, Beijing, on March 25, 2026. Photo: Xinhua

Published: 8:30pm, 22 Apr 2026

China’s electric vehicle (EV) makers could introduce a lidar sensor-based intelligent driving system in models priced as low as 60,000 yuan (US$8,795) this year, reflecting intensifying competition and falling costs, according to AI-driven tech firm Robosense.

This price point is the lowest for models on sale in China’s market, excluding mini vehicles sold for less than 50,000 yuan, indicating fierce competition among Chinese carmakers amid the phasing out of policy incentives.

Notably, light detection and ranging (lidar) systems were historically reserved for high-end models or premium trims, as they are a cornerstone of advanced automotive safety due to their ability to provide precise road data during extreme conditions, such as heavy fog. This exclusivity was largely driven by the high manufacturing costs of components.

However, the landscape has shifted dramatically due to rapid technological advancements and the efficiencies of large-scale production.

The average selling price (ASP) of automotive lidar sensors – which sat at around US$80,000 in 2016 – plummeted to US$200 by 2025. This transition has also seen a shift in global leadership, with Chinese manufacturers overtaking US firms as the dominant market players.

By comparison, the lidar units used by companies in the United States range from US$1,000 to US$75,000.

Manufacturers are increasingly integrating lidar into budget-friendly models amid an aggressive price war in the Chinese EV sector. While these systems were seen in vehicles priced between 100,000 and 200,000 yuan in 2025, the floor has continued to drop.

China’s low-cost EVs to be fitted with lidar systems, usually reserved for luxury models

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Intense competition, rapid tech advancement and falling costs allow the superior driving systems to be fitted into budget-price vehicles

Intense competition, rapid tech advancement and falling costs allow the superior driving systems to be fitted into budget-price vehicles