AeroHT, an affiliate of Chinese electric vehicle (EV) maker Xpeng, has raised USD150 million in its latest round of financing, which is expected to accelerate commercialization of its USD200,000 flying car. The start-up, controlled by Xpeng Co-founder and CEO He Xiaopeng, said that proceeds from the Series B1 funding round would help build an advanced production line for the flying car in Guangzhou, the company’s home city. “The fresh capital will strengthen AeroHT’s research and development, realize mass production of our products and speed up the commercialization process,” the company said. The announcement came just a month after AeroHT disclosed the USD200,000 price for the vehicle. It plans to begin taking pre-orders in the fourth quarter. Wang Tan, Co-founder and Chief Designer of AeroHT, told the South China Morning Post that the company is aiming for sales of 5,000 units in the coming two years. In 2021, AeroHT closed a USD500 million financing round from investors including IDG Capital, 5Y Capital, Sequoia Capital and GGV Capital in what was the largest investment deal involving low-altitude air travel in Asia.
The low-altitude economy refers to businesses operating aerial vehicles below 1,000 meters in altitude. In 2021, Beijing introduced policies and regulations to bolster the nascent sector. Known as eVTOL (electric vertical take-off and landing) vehicles, flying cars such as AeroHT’s are designed to offer an alternative to existing public transport options, enabling passengers to avoid traffic congestion. At present, most low-altitude air travel businesses are aiming to offer services to corporate clients as they develop safe and smart next-generation flying cars. AeroHT said its flying cars also target individual clients.
“Overcapacity worries in the EV sector benefit leading low-altitude-economy air travel firms as venture capitalists hunt for promising start-ups that represent the future of mobility,” said Yin Ran, an angel investor in Shanghai. “Top players must make their flying cars more affordable to customers to foster the growth of the new transport mode.” In March, the Chinese government designated Guangzhou, the capital of Guangdong province as a base for the eVTOL industry. Nansha, a district in Guangzhou, was picked to develop a citywide management system for drones as well as industry standards for the low-altitude economy, according to the National Development and Reform Commission (NDRC). In April, AeroHT signed a preliminary agreement with the district government of Panyu, another Guangzhou district, to jointly construct take-off and landing sites for flying cars.
A number of start-ups around the world are developing flying cars, betting on the future of mobility being at least partially airborne. Lilium, a German company, raised USD830 million in a special-purpose acquisition company (SPAC) deal on the Nasdaq stock exchange in 2021. American air taxi start-up Joby raised USD1.6 billion in another SPAC deal the same year, the South China Morning Post reports.
