On June 26th, 2024, a flying taxi was displayed at SNIA’s China Telecom booth in Shanghai during the opening of the 2024 Mobile World Congress.
nuphoto | nuphoto | Getty Images
Flying taxis will become a viable way of transport in China in the next three to five years, according to senior executives at Ehang, who manufactures autonomous aircraft (AAVS).
The forecast by Ehang’s vice president He Tianxing comes just days after the company became its first company, along with Hefei Heyi Aviation, a joint venture to obtain certificates from China’s Civil Aviation Authority to operate “pilotless aviation vehicles carrying civilians.”
Ehang said the certification clears the way vehicles are operated commercially and enables paid human transport services and other low-altitude use cases developed by the company.
Initially, Ehan’s AAV will be used for tourism, and passengers can ride along Guangzhou and Hefei’s designated routes by the end of June, told CNBC in an interview translated from Mandarin.
The company will gradually explore air taxi services as tourism progresses. He named Hefei and Shenzhen as examples of some of the first cities expected to receive air taxi services.
According to Ehang’s website, the certified EH216-S is a fully electric pilotless two-seater aviation vehicle with 16 propellers. The maximum design speed is 130 km/h and the maximum range is 30 km/h.
He hopes to earn certification in the next city this year, with a second set of tourism locations including Zhuhai, Shenzhen, Taiwan, Wuxi, Wenzhou and Wuhan.
At the upcoming Hefei and Guangzhou location, he refused to share prices per ride, but hoped it would be reasonable enough to encourage more people to try pilotless aviation vehicles.
He added that the experience “just like getting into a car,” noting that a helmet or a parachute is not necessary. He said the initial length of the vehicles offered by the company can vary from about 3 to 10 minutes.
When asked about the global market, he expects that overseas partners have been actively reaching out since the news of the accreditation, and that Ehang will be able to expand overseas in the coming years.
Early leads
According to technology analysts, China’s permitting passenger AAVS commercial use means innovation and leadership in transportation and mobility.
“It’s a major development and we’re shooting across the bow from China, showing that technology innovation is accelerating,” said Dan Ives, global head of technology research at Wedbush Securities.
China has already established itself as a global leader in electric vehicles and autonomous driving. Meanwhile, flying taxis represent “one of the next frontiers of the automotive and high-tech industry,” Ives said, adding that China has already created a clear lead in the space.
Beijing first released the rules for unmanned aircraft flights (vehicles without pilots) in June 2023. Meanwhile, the US has not yet implemented comparable regulations.
Instead, Washington’s Federal Aviation Administration announced general rules last year for “powerlift” vehicles, including electric vertical takeoff and landing (EVTOL) aircraft.
EVTOL covers electric aircraft designed to carry passengers without the need for runways and take off and land vertically. However, the FAA focuses on those that were manually piloted.
Tu Le, founder of automotive consultant Sino Auto Insights, told CNBC that the US is lagging behind China and the EU due to this lack of favorable policy, choking it in line with lobbying from competing industries or “simple politics.”
Meanwhile, China is supporting EVTOL technology as part of its “low-high economy,” and its development has become a major policy goal. The term refers to economic activity taking place in airspaces less than 1,000 meters, with most commercial planes cruising around 9,000 meters.
In addition to flying taxis and other EVTOLs, examples of low-altitude economies include unmanned drones for delivery and helicopter operated air shuttle routes.
The term was recently included in China’s annual work report for 2025, and the government has pledged to promote its development. Beijing has also pledged to increase consumption in the lower elevation economy, particularly low altitude tourism, air sports and consumer drones, as part of a special action plan in March.
Already, China’s low-height economy is one of the fastest growing industries, worth 1.5 trillion yuan ($205 billion) by 2025, and is projected to nearly double by 2035.
The competition will rise
Sino Auto Insights’Le also believes China’s progress in the EVTOLS sector is contributing to a high level of domestic competition.
China has seen massive ramp-ups of future players in recent years as companies prepare for the future of high-tech futures that were once limited to science fiction.
Companies investing in space include electric car makers such as GAC, Geely and Xpeng.
Xpeng Aero HT, Xpeng’s flying car division, completed maiden flights for “land airlines” products last week. The van, paired with two quadcopters, told CNBC.
Xpeng Aero HT has held a pre-sale launch event and said it will complete construction of the mass production plant later this year. We also aim to obtain airworthiness certification by the end of the year.
Last month, Xpeng Motors CEO Xiaopeng told the state media he plans to mass-produce flying cars by 2026 as China’s low-altitude economy is being boosted by support policies.
However, despite China’s leading EVTOL regulations, it is expected to face competition with international companies investing and building on different types of aviation vehicle technologies.
These companies include international companies such as Boeing in the US, Airbus in France, and the Brazilian company Embraer.
Many startups, including US Joby Aviation, Archer and Wisk, are also planning to launch a variety of commercial aviation taxi services over the next few years.
According to Wedbush’s Ives, the global Electric Vertical Takeoff and Landing (EVTOL) aircraft business could grow to $30 billion in market opportunities over the next decade.
