Move over cars! China just approved self-flying taxis
What's the story
In a major leap in the field of aviation, China has approved its first-ever autonomous passenger drones, or "flying taxis," for commercial operations. The Civil Aviation Administration of China (CAAC) has issued air operator certificates to EHang Holdings and Hefei Hey Airlines, allowing them to operate unmanned aerial vehicles for passenger services. This includes urban sightseeing tours, opening a new chapter in China's transportation sector.
Certification achievement
Final regulatory hurdle cleared for flying taxi companies
The approval from CAAC is the last regulatory hurdle that EHang and Hefei Hey Airlines had to cross. They had already obtained their type certificate, production certificate, and airworthiness certificate. According to Citic Securities, low-altitude tourism will be the beginning of this new business. The report further stated that "EHang's urban sightseeing tours can accelerate the development of the industry."
Economic potential
China's low-altitude economy: A key driver of growth
Beijing is pushing the low-altitude economy, with innovations like delivery drones, blimps, and flying cars. The Chinese government sees this sector as a key driver of growth alongside emerging technologies like biomanufacturing, quantum computing, AI, and 6G networks. Cheng Bolin of China Information Association's low-altitude unit said, "The low-altitude economy is a new growth driver." He added it "will be an important engine to push the high-speed development of China's economy."
Innovative design
EHang's EH216-S: A pioneer in autonomous eVTOL vehicles
In April 2024, EHang became the first company in the world to obtain a production certificate for mass-manufacturing autonomous electric vertical takeoff and landing (eVTOL) vehicles in China. The EH216-S, launched in 2018, is an all-electric, pilotless two-seater with 16 propellers and a carbon fiber fuselage. It can fly up to a maximum altitude of 10,000 feet (3,000 meters) and cruise at 100km/h.
Market forecast
China's low-altitude economy projected to reach 1.5 trillion yuan
EHang intends to use its EH216-S for air taxi services, aerial tourism, airport shuttles, and cross-island transport. China's low-altitude economy is projected to be worth 1.5 trillion yuan by 2025 and may even reach 2.5 trillion yuan by 2035, according to research group Hurun. The flying taxi market in China is getting competitive with homegrown start-ups EHang and Feihang Aviation competing with automakers like Xpeng and Geely.