Mercedes-Benz and Luminar Forge Strategic Alliance for Next-Gen Lidar Integration

25

Global push for advanced driver-assistance systems intensifies

In a significant move within the self-driving vehicle race, Mercedes-Benz has entered a new development agreement with Luminar Technologies to co-create and integrate the next-generation Halo lidar sensors into future models. This marks a shift from their previous supply agreement for Luminar’s Iris sensors and underscores Mercedes’ commitment to upgrading its autonomous capabilities with more compact and efficient systems.

The deal is Luminar’s first for its Halo lidar, designed to offer improved energy efficiency and better integration within a vehicle’s structure—such as rooflines or behind windshields—making it ideal for luxury consumer vehicles. While this new partnership does not yet include a supply contract, Luminar CEO Austin Russell confirmed that both companies are working on large-scale global development efforts to bring the technology into production by 2026.

The global lidar market is expanding as automakers invest in safer, semi-autonomous technologies. Lidar, which uses light pulses to detect objects and build a 3D view of surroundings, is becoming crucial for next-generation driver assistance systems.

Mercedes diversifies lidar partnerships amid geopolitical complexities

Mercedes-Benz continues to work with multiple lidar suppliers, including France’s Valeo and China’s Hesai. Although it did not confirm Reuters’ recent report about a global supply deal with Hesai, Mercedes acknowledged ongoing evaluation of next-gen lidar systems with Luminar. Hesai’s lower price point—around $200 per sensor compared to Luminar’s $500 target—has been cited as a key factor in winning large-volume deals.

Automakers commonly partner with multiple suppliers to reduce geopolitical and tariff-related risks, particularly in light of current Sino-U.S. trade tensions. Luminar, which has manufacturing facilities in Mexico, Thailand, and China, is considering shifting Halo production to the United States if trade policies remain uncertain.

Despite the lack of a guaranteed supply contract, this development agreement could be a precursor to wider adoption of Luminar’s technology in Mercedes’ future lineup, supporting the automaker’s broader ambition to scale advanced driver-assistance features across its vehicle range.