Some of China’s biggest carmakers, from the iconic Hongqi or Red Flag to Geely Auto and Tesla rival Xpeng, are competing on a new front – flying cars – to build a first-mover advantage as sales of electric vehicles begin to saturate. Front-runners like AeroHT, an affiliate of Xpeng, are edging closer to commercializing their passenger drone businesses amid the Chinese government’s support for the so-called low-altitude mobility economy, spearheading innovations in the global air-travel industry. AeroHT filed an application to the Civil Aviation Administration of China (CAAC) for a license to build its first flying car, while Ehang has obtained a license to offer low-altitude air travel services to passengers. Hongqi, a unit of China’s oldest carmaker FAW Group, Geely Auto and other players like GAC Group and Chery Automobile are dedicating a lot of resources to the research and development (R&D) of flying cars or drones, offering urban air mobility to overcome traffic gridlock in cities.
“The flying cars will take some time before they generate profits, given the high production costs and small demand at present,” said Yin Ran, an angel investor in Shanghai. “The leading carmakers are investing for the future because they design and manufacture fancy transport tools to display their technology advancements.” The low-altitude economy refers to businesses operating aerial vehicles below 1,000 meters. As part of the aviation industry’s focus on aerial connectivity in and around cities, it has gained momentum since 2021 when Beijing introduced policies and regulations to support the sector. AeroHT’s Land Aircraft carrier features an electric minivan to charge the electric vertical take-off and landing (eVTOL) aircraft stored in the rear. Its production facilities were 70% completed and could start operations in the fourth quarter, it added. The start-up aimed to sell 5,000 units, each priced at about USD200,000, Co-founder and Chief Designer Wang Tan said.
Hongqi and Geely have also ventured into the nascent drone sector to compete against established players like Ehang and DJI by leveraging their own automotive supply chains, electrification, digitalization and autonomous driving technologies. State-owned carmaker GAC unveiled its flying car GOVY in December and debuted its first composite-wing flying car called GOVY AirJet. Its Robo-AirTaxi system uses GOVY AirCar for roadtrips up to 20 km, and AirJet for air travel up to 200 km. Geely established Aerofugia, a subsidiary producing unmanned aerial vehicles (UAVs) and passenger eVTOLs in 2020. It focuses on low-altitude transport for tourism and medical rescues. Its operating cost was about 20% to 33% lower than traditional helicopters, according to its CEO Guo Liang. The company plans to start trial flights in Chengdu in the second half of next year and push for large-scale development after 2030, he added. State-owned Changan Automobile announced late last year a partnership with Ehang on the research and development (R&D), manufacturing, sales and operation of eVTOLs. The companies would consider forming a joint venture to develop future mobility ecosystem technologies. Chery showcased a flying car prototype at its Global Innovation Conference in Anhui province in October, and completed a test flight covering about 80 km.
Spurred by policy support, technological innovation and rising investment, China’s low-altitude economy is projected to increase more than fivefold to CNY3.5 trillion by 2035, from 2024, according to the CAAC, as reported by the South China Morning Post.
