China’s flying car start-ups: how close are they to real urban transport?

China’s flying car start-ups (File Image: AFP)

In Guangzhou, Chinese start-up EHang has become the first company in the world to secure national clearance for automatic passenger flights. Its EH216-S electric vertical take-off and landing plane (eVTOL) flew a short demonstration recently, lifting off one rider about 20 meters into the air before landing. EHang is set to begin offering tickets soon for sightseeing flights in Guangzhou and Hefei, and is positioning its planes for logistics, emergency response, and ultimately urban transport, the Financial Times reported.

China's leadership in battery production and regulatory environment friendly to it have provided it with the initial lead in the global race for flying cars. The state planner has created a specialized department for low-altitude aviation, and there is heavy investment from cities like Guangzhou and Shenzhen in infrastructure. Shenzhen aims to establish 1,200 landing points within a year, while Guangzhou has pledged more than Rmb10bn ($1.4bn) by 2027 to build more than 100 landing areas. This guarantee has attracted automakers such as Geely, GAC, and FAW and newcomers such as TCab in Shanghai.

While progress is made, the sector still faces issues. Regulators must decide how to manage urban flight paths, noise pollution, and collision risk. Two of Xpeng's Aeroht eVTOL prototypes collided with one another in a demonstration test flight in China's north-east on Monday, with one catching fire after landing. No injuries were reported, but the incident substantiated concerns regarding safety. Other start-ups in the rest of the world have faced similar issues, with some developers in Europe having bankrupted several of them and U.S.-based Joby Aviation barely surviving some crewed test flights in Dubai.

Analysts estimate the global urban air mobility market could reach nearly $24bn annually by 2030, up from $5bn last year. Bernstein analysts say Chinese producers have an advantage in price, with some models targeted at around Rmb2mn ($275,000), compared to $5mn for traditional helicopters. Xpeng's "Land Aircraft Carrier" – a van with a detachable two-seat flying module on board – has already attracted more than 4,000 pre-orders, and the company plans to mass-produce it next year. Experts point out, though, that the real profitability lies in launching passenger services, not single tourist flights.

While the dream of tourism by sightseeing tours can become a reality in the near future, large-scale use of flying taxis is still a long way off. Experts advise that at least five more years of progress will go by before commercialisation takes hold. For, as one market observer has noted, the challenge is not so much to construct planes but to show practical applications for everyday transport. So far, the news is dominated by China's start-ups, but the true test will be when flying cars move beyond demos and tourism into urban life.