Chinese car manufacturers, including Hongqi, Geely Auto, and Xpeng, are exploring the flying car market as electric vehicle (EV) sales near saturation.

These companies aim to establish a presence in urban air mobility, contributing to the emerging low-altitude economy.

AeroHT, a subsidiary of Xpeng, has applied to the Civil Aviation Administration of China (CAAC) for a license to produce its first flying car. In contrast, Ehang has already received approval to offer low-altitude passenger air travel services.

Other major players, including FAW Group’s Hongqi, Geely Auto, GAC Group, and Chery Automobile, are investing in the research and development of aerial vehicles to tackle urban traffic issues.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s regulatory support creates global first-mover advantage

China’s aviation authorities are actively creating a regulatory environment that could give Chinese flying car manufacturers a significant head start in global commercialization.

The Civil Aviation Administration of China (CAAC) has been working extended hours to expedite approvals, already certifying AutoFlight Group’s CaryAll aircraft, the first electric vertical takeoff and landing (eVTOL) vehicle over 1 metric ton approved for commercial flight 1.

This regulatory momentum is part of a deliberate national strategy to develop a “low-altitude economy,” businesses operating aerial vehicles below 1,000 meters, projected to reach 1 trillion yuan (approximately $154 billion) by 2025 2.

Recent actions show this strategy in motion: AeroHT filed an application with CAAC for a license to build flying cars, while Ehang has already obtained a license to offer low-altitude passenger services 3.

This contrasts with more measured regulatory approaches in Western markets, potentially allowing Chinese manufacturers to accumulate crucial operational experience and technical refinements before international competitors can fully enter the market.

2️⃣ EV market saturation drives strategic diversification into aerial mobility

Chinese automakers are strategically pivoting to flying cars as domestic electric vehicle growth moderates, revealing a calculated approach to maintain technological leadership and market expansion.

China’s passenger vehicle market, which grew at double-digit rates and became 40% larger than Europe’s by 2016, is showing signs of maturation as EV adoption reaches higher penetration levels 4.

This market evolution explains why established automakers like Hongqi (China’s oldest carmaker under FAW Group), Geely, GAC Group, and Chery are now dedicating significant R&D resources to aerial mobility 3.