Wings vs. wheels: Chinese carmakers' bold bet on flying car breakthroughs

Another two Chinese automakers recently unveiled significant progresses in the flying car domain.

Anhui Jianghuai Automobile Group Co., Ltd. ("JAC Motors") recently signed a strategic framework agreement with the urban air mobility (UAM) company EHang Holdings ("EHang") and Hefei Guoxian Holdings Co., Ltd. to jointly establish a joint venture in Hefei, according to an announcement issued by EHang on February 25.

The new entity will invest in and develop an advanced, standardized, and automated manufacturing facility for low-altitude aircraft, focusing on the production of electric-driven, intelligent, and pilotless eVTOL (electric vertical takeoff and landing) aircraft.

Under the agreement, the three parties will collaborate on the R&D, production, and sales of next-generation aircraft, driving technological innovation and industrial-scale expansion. The partnership aims to integrate Hefei's new energy vehicle supply chain with aerospace manufacturing expertise, enabling component standardization and the creation of a unified production framework.

In addition, on February 19, Chery Automobile announced via its official WeChat account that a patent for a "modular flying car", jointly developed with Tsinghua University's Emerging Transportation Solutions laboratory, has been officially published.

Unlike most integrated flying cars, this modular flying car introduces a pioneering modular design featuring a tri-body docking mechanism. The vehicle consists of three main components: a flight module (including propellers and wings), a cabin module, and a driving module.

By combining the flight module with the cabin, the vehicle takes the form of an aircraft, while pairing the cabin with the driving module transforms it into a car—allowing for Lego-like assembly flexibility. This design enables seamless transitions based on usage needs: the flight module attaches for takeoff, automatically detaches mid-air, and reconnects with the driving module upon landing.

Additionally, the tri-body flying car eliminates traditional steering wheels and pedals, supporting unmanned operation in both air and land modes. This innovation not only simplifies piloting but also offers a potential solution to urban congestion.

Chery previously showcased a scaled-down model of this flying car at the Auto China 2024. Later, at its 2024 Global Innovation Conference in last October, the company announced that the vehicle had successfully completed its maiden flight.

With advancements in electrification and intelligence technologies, competition in the automotive industry is extending beyond traditional boundaries.

Low-altitude economy has become a key focus for leading automakers, with Geely, GAC Group, and XPENG making notable progress in the field. Changan Automobile also revealed plans to invest over 20 billion yuan in low-altitude economic development over the next five years.

As China officially incorporated low-altitude economy into its Report on the Work of the Government, cities like Beijing, Shanghai, Guangzhou, and Shenzhen have begun fostering a new industrial ecosystem encompassing aircraft manufacturing and relevant infrastructure development. For automakers, early investment in this sector represents a strategic advantage.

However, recognizing an opportunity is just the first step in this uncharted territory. Dominating the low-altitude economy will require significant upfront investment, making financial strength a decisive factor in determining industry leaders.

Automakers bet big on future of flying cars

The concept of flying cars is gaining momentum, but for many, it remains an abstract idea. In essence, these vehicles combine the functionalities of both automobiles and aircraft, capable of flying in the air and driving on land.

Broadly speaking, flying cars fall into two categories. The first type seamlessly integrates aircraft and automobile capabilities, enabling land-to-air transitions. The second type mainly refers to electric vertical take-off and landing (eVTOL) aircraft, which are electrically powered, capable of vertical take-off and landing, and designed for urban air mobility—similar to helicopters. Among the two, eVTOLs are advancing at a faster pace.

As the backbone of the low-altitude mobility revolution, eVTOLs share electrification and intelligent technology foundations with smart electric vehicles (EVs). However, their aviation-grade attributes demand higher standards for airworthiness certification, system performance, and safety redundancy.

Several automakers have already laid out their mass production timelines for flying cars. XPENG AEROHT, an affiliate company to XPENG, has outlined a three-phase strategy, with its modular flying car, the "Land Aircraft Carrier," set to go into mass production and deliveries in 2026. Geely Holding, on the other hand, is reportedly considering the investment in German flying taxi company Volocopter GmbH.

In December 2024, GAC Group unveiled its new flying car brand, GOVY. The company outlined a vision for intelligent three-dimensional mobility, planning to conduct airworthiness certification and start building production lines in 2025, with pre-orders also set to open. At the event, GOVY AirJet, the brand's first composite-wing flying car, made its debut.

Just days later, Changan Automobile further solidified its commitment to the low-altitude sector by signing a cooperation agreement with EHang, a leading urban air mobility (UAM) technology platform company. Changan Automobile has pledged to invest over 20 billion yuan in the next five years and more than 100 billion yuan over the next decade to explore integrated land, sea, and air mobility solutions.

It's not just Chinese automakers eyeing the low-altitude economy—global giants like Toyota and Volkswagen are also making strategic moves. In October 2024, Toyota announced an additional $500 million investment in Joby Aviation, supporting the certification and commercial production of its electric air taxis. Toyota would also provide powertrain and braking system components for Joby Aviation's flying cars. Meanwhile, Volkswagen is developing its own fully electric, automated eVTOL passenger-carrying aircraft.

As a key innovation in next-generation transportation, flying cars are attracting interest from companies across various industries, underscoring their confidence in the market's potential. According to estimates from the Civil Aviation Administration of China ("CAAC"), the country's low-altitude economy is expected to reach 1.5 trillion yuan by 2025, with projections soaring to 3.5 trillion yuan ($485 billion) by 2035. With such vast opportunities on the horizon, automakers worldwide are determined not to miss out on this transformative shift.

Policies fuel industry expansion

In recent years, China has incorporated the low-altitude economy into its national strategic planning, with policies rapidly evolving to support the sector's growth. Issued in 2021, China's National Comprehensive Three-dimensional Transportation Network Planning Outline first introduced the concept of a low-altitude economy, and by 2024, the government's work report officially designated it as a new engine of economic growth.

In 2023, the Ministry of Industry and Information Technology (MIIT), along with six other government agencies, jointly released the Guidelines on the Development of Green Aviation Manufacturing Industry, setting a target for eVTOL aircraft trial operations by 2025. The plan also aims to commercialize and scale up the use of next-generation general aviation equipment featuring automation, electrification, and intelligence by the same year. What's more, the CAAC has introduced supporting policies such as the Interim Regulations on Unmanned Aircraft Flight Management, aiming to establish a comprehensive framework for airworthiness certification, airspace management, and infrastructure development.

Regional governments have actively responded to the national agenda. According to incomplete statistics, since 2024, around 30 provinces have included low-altitude economy development in their government work reports or introduced relevant policies.

For instance, Guangdong Province has laid out an ambitious roadmap through its 2024–2026 Action Plan for High-Quality Development of the Low-Altitude Economy and 2020–2035 General Airport Layout Plan, setting a goal of 32 general aviation airports deployed across the province by 2025. In major cities, Shenzhen plans to build over 1,000 takeoff and landing platforms for low-altitude aircraft by the end of 2025, as outlined in its 2024–2025 High-Quality Low-Altitude Takeoff and Landing Facility Construction Plan. Guangzhou, on the other hand, has proposed five hub-type vertical takeoff and landing sites and over 100 regularly operating takeoff points by 2027 through a series of specialized measures.

The policy tailwinds are now reaching enterprises, accelerating the commercialization of flying cars. In November 2024, XPENG AEROHT announced a strategic cooperation agreement with the Hainan Provincial Development and Reform Commission, marking a key milestone in the commercialization of flying cars. The partnership aims to establish Hainan as a global demonstration hub for flying car applications, further solidifying the island's position as a pioneer in the low-altitude economy.

While a completely unrestricted green light for flying cars is unlikely, both government policies and infrastructure development are creating an exceptionally favorable environment for enterprises to push forward with their industry-wide deployment.

Tech, cost, infrastructure challenges to scale commercial operation

While the low-altitude economy is gaining momentum, it is crucial to maintain a realistic perspective on its early-stage development. In an industry still in its infancy, overly aggressive, short-term approaches hold little value.

XPENG AEROHT previously emphasized that the launching the "Land Aircraft Carrier" and boosting its volume production to drive the construction of low-altitude flight industrial chain and ecosystem is merely the first step.

Developing high-speed, long-range eVTOL aircraft and integrating them into urban air mobility systems will be a lengthy process.

According to data compiled by Gasgoo Auto Research Institute, current battery-powered eVTOLs face significant range limitations due to constraints in battery energy density and onboard space. Most models have a flight range of less than 200 km, with only a handful reaching 300 km, making them unsuitable for long-distance applications such as intercity commuting and logistics transport.

Beyond technical challenges, cost remains a major hurdle for the eVTOL industry. Powertrain systems—including propulsion and energy systems—account for over 50% of total manufacturing expenses, making commercialization difficult.

To overcome range and cost constraints, the industry is increasingly looking toward hybrid-electric and hydrogen-powered propulsion solution. Hybrid technology combines multiple power sources, allowing for optimized energy use, extended flight range, and potential cost reductions. Meanwhile, hydrogen fuel cells offer high energy density, enabling longer flights, and as technology matures and scales up, costs are expected to decrease further.

The development of vertical takeoff and landing (VTOL) infrastructure is a crucial prerequisite for the commercialization of eVTOL aircraft. Beyond providing safe and efficient takeoff and landing sites, these facilities must also be equipped with charging stations and specialized maintenance services to ensure optimal aircraft operation at all times. Additionally, VTOL hubs serve as key transit points, enhancing the seamless integration of air and ground transportation and improving overall urban mobility efficiency.

According to a senior analyst at Gasgoo Auto Research Institute, eVTOL infrastructure is expected to develop along three distinct models based on space constraints and functional requirements:

Vertiports: Small-scale urban takeoff points, often located on high-rise rooftops, designed for short-distance, high-frequency travel with basic takeoff, landing, and charging capabilities.

Mid-sized VTOL hubs: Larger facilities in urban or suburban areas, such as highway rest stops, offering not only takeoff and landing services but also maintenance support.

Large-scale VTOL airports: Located in dedicated zones such as greenfields or standalone buildings, these expansive hubs can accommodate high volumes of eVTOL aircraft operations, function as multimodal transport centers, and facilitate large-scale passenger and cargo transportation.

Long road to commercial viability, yet promising future

While technological advancements and infrastructure expansion will likely address these challenges over time, the timeline for widespread adoption remains uncertain—potentially spanning 10 to 20 years. In the near future, full-scale commercialization remains an uphill battle.

For automakers, flying cars represent a new avenue for revenue growth and offer consumers a potential solution to urban congestion. However, the sector still faces significant regulatory and financial hurdles. Notably, obtaining a Type Certificate (TC)—a mandatory approval for commercial eVTOL aircraft operations—requires an estimated investment of $100 million. As of now, no automakers, including XPENG and Geely, have secured the TC. The only industry player to have obtained it, EHang, took three years to complete the process.

The low-altitude economy holds tremendous potential, but not every company will succeed in this market. The industry demands high technical expertise and substantial financial investment, making it a high-stakes endeavor for all participants. While the era of flying cars may still be distant, there is hope that it will one day become a mainstream reality—sooner rather than later.