XPeng Leads the Way: The Rise of Flying Cars in the Global Market

The concept of flying cars has transitioned from science fiction to reality, and Chinese companies such as XPeng and EHang are leading the charge this year, capitalizing on the country's expertise in electric vehicle (EV) technologies to claim a significant share of the emerging global market.

XPeng AeroHT, a subsidiary of the electric vehicle startup, is introducing an innovative dual-mode electric vertical take-off and landing (eVTOL) vehicle. This groundbreaking vehicle can operate on land like a car and then detach a flying module for air travel.

"Normal eVTOL vehicles cannot drive on the ground, but our model is dual-use," stated Qiu Mingquan, vice president at XPeng AeroHT.

The Civil Aviation Administration of China has initiated its type certification review for the aircraft, a crucial requirement for commercial operation. Pre-orders for the XPeng AeroHT will be available in China as early as October, with mass production slated to commence as soon as next year. Anticipated customers include tourism-related companies and outdoor enthusiasts.

Priced in the 1 million yuan ($138,000) range, the aircraft aims to become more affordable in the future, with the company hoping to eventually reduce the price to hundreds of thousands of yuan. Qiu mentioned, "If large-scale mass production becomes possible, we can dramatically reduce costs" for materials like carbon fiber.

The company plans to expand its operations overseas, with the Middle East as a key market. "The Middle East is an important market for us, given the level of regulation, openness to new things and cost," Qiu said.

EHang, another prominent player, obtained type certification for its EH216-S model in October. The two-seater can fly for 25 minutes on a single charge and went on sale on April 1 for 2.39 million yuan in China and $410,000 elsewhere. Last month, the startup received authorization to mass-produce the aircraft, aiming to partner with hotels and other businesses to commercialize tourism services.

Behind the rapid progress of China's flying car sector is the accumulation of EV-related technologies, including batteries. Chinese battery makers like CATL, a global leader in vehicle batteries, are developing products for eVTOL aircraft, providing Chinese manufacturers an advantage in procurement.

Numerous technologies can be shared between the automotive and eVTOL businesses. Local governments are providing substantial support, with Shenzhen and Guangzhou announcing plans to boost capital and expand production in the field.

While obstacles to widespread use remain, the global eVTOL market is anticipated to reach $23.4 billion in 2030, about 19 times the size it was last year. With research companies Global Information and MarketsandMarkets predicting growth not only in China but also in North America, Europe, and the Middle East, makers of eVTOL aircraft are eyeing overseas markets. To carry out commercial operations abroad, type certifications are necessary from each country. U.S. startup Joby Aviation has already applied for certification in the U.S., the U.K., and Japan.