2024/04/20 Nikkei English Shimbun Report by Shizuka Tanabe
Xpeng, EHang and other Chinese companies will commercialize flying cars this year, taking advantage of China's strengths in electric vehicle technology and capturing a large share of the emerging global market.
XPeng AeroHT, a subsidiary of electric vehicle startup XPeng AeroHT, aims to sell a dual-mode electric vertical take-off and landing (eVTOL) vehicle that can be driven on land like a car or fly in the air with the flight module removed.
"Ordinary electric vertical take-off and landing vehicles can't drive on the ground, and our model is dual-purpose," said Qiu Mingquan, vice president of Xpeng Aerospace Technology Co. Ltd.
The Civil Aviation Administration of China (CAAC) has begun a type approval review of the aircraft, which is a requirement for commercial operations.
Xpeng Air High-Tech Co., Ltd. will begin taking pre-orders in China as early as October, and plans to start mass production as soon as next year. Demand is expected from travel-related companies and outdoor enthusiasts.
The price of the aircraft will be around 1 million yuan. Qiu said the company hopes to eventually reduce the price to hundreds of thousands of yuan.
"If mass production becomes possible, we will be able to significantly reduce the cost of materials such as carbon fiber," he said.
The company plans to expand overseas. "The Middle East is an important market for us, given the level of regulation, openness to new things and the cost," Qiu said.
The company also plans to commercialize an all-in-one dual-purpose eVTOL aircraft that does not require separation, where the flight propeller can be folded and stored on top of the aircraft while piloting. A concept model was presented at the Las Vegas Technology Trade Show in January.
EHang's EH216-S aircraft received type approval in October. This two-seater aircraft can fly for 25 minutes on a single charge. It went on sale on April 1 in China for $2.39 million and $410,000 in other regions.
Last month, the startup received authorization to mass-produce the aircraft. The company wants to partner with hotels and other businesses to commercialize tourism services.
Vice President He Tianxing said: "We have received inquiries from the Middle East and Southeast Asia."
According to a report by China Merchants Securities last month, China accounts for 50 percent of the global electronic VTOL model, much higher than the 18 percent in the United States and 8 percent in Germany.
Behind the rapid development of China's flying car industry is the accumulation of technologies related to electric vehicles, including batteries.
Allegedly, the battery of an electric flying car requires a high energy density of more than 400 watt-hours per kilogram of weight. Chinese battery manufacturers, such as CATL, the world's leading automotive battery manufacturer, are developing products for eVTOL aircraft, which gives Chinese manufacturers an edge in terms of sourcing.
There are many technologies that can be shared between automotive and eVTOL businesses. According to CITIC Securities, "weight-reducing vehicle manufacturing technology is supporting the realization of flying cars".
Guangzhou Automobile Group, a major state-owned automaker, is developing the GOVE eVTOL aircraft, which has an aircraft part separated from the chassis of the car and will begin test flights next year.
Geely's subsidiary, Aerofugia, produces eVTOL aircraft that can carry up to six people and can fly long distances.
Many cities in China are facing severe traffic congestion, which has heightened expectations for eVTOL aircraft to provide an alternative means of transportation and logistics.
China's eVTOL, drone and helicopter businesses are collectively known as the low-altitude economy. The Chinese Communist Party said at a meeting in December that efforts would be made this year to promote the development of a low-altitude economy, as well as biotechnology and the space industry.
Local governments are also providing support. Shenzhen began taking measures in December to support companies in the sector to increase capital and expand production. Guangzhou has also announced plans to set up a field testing zone for related companies.
However, barriers to widespread adoption remain. There are still few take-off and landing points, and traffic rules for individual drivers have not yet been introduced.
An eVTOL company executive said: "In the coming years, we will be forced to fly relatively less".
Making a profit is not an easy task, either. Yihang had a net loss of 300 million yuan last year. The company has not yet been able to reduce costs through mass production.
In November, US short-seller Hindenburg Research questioned EHang's type certification and pre-sale data, which EHang denied.
In order to capture a wide range of demand, eVTOL aircraft manufacturers are eyeing overseas markets.
According to research firm Global Information & Markets & Markets, the global eVTOL market is expected to reach $23.4 billion in 2030, about 19 times the size of last year. In addition to China, North America, Europe and the Middle East are also expected to see growth.
In order to conduct commercial operations overseas, it is necessary to obtain type approvals from each country. Joby Aviation, an American start-up, has applied for certification in the United States, the United Kingdom, and Japan.