Xpeng will invest 3 billion yuan (US$413 million) in its electric vertical take-off and landing (eVTOL) aircraft business, as announced by CEO He Xiaopeng.

The company is building a factory in China, set to start operations in 2026, with an annual production capacity of 10,000 aircraft.

He said that the global flying car market could reach US$2 trillion in the next two decades.

While low-altitude aircraft make up only 3% to 5% of automotive sales volume, they contribute 20% of sales revenue.

This investment comes as Chinese companies explore new transportation opportunities amid rising competition in the EV market.

Recent Xpeng developments