Evolving eVTOL Market: How Shanghai is Shaping the Future of Mobility

As part of its strategic move towards a low-altitude economy, Shanghai plans to establish at least 100 service areas focused on developing and commercializing pilot-free flying cars. The talents of over 40 companies operating at the East China UAV Base will be utilized to provide a diverse array of services, including sightseeing, logistics, and surveillance.

The Emergence of the Low-Altitude Economy

The low-altitude economy consists of operations conducted by aerial vehicles flying below 3,000 meters, a sector that has gained momentum since 2021 following supportive governmental policies. The East China UAV Base, covering 1,400 square kilometers, has been designated as a testing ground for eVTOL innovations across 20 pilot zones approved by the government. Companies including DJI and SF Express conduct crucial tests here, while the facility also acts as an incubator for promising start-ups.

Future Prospects and Challenges

• Flying cars could significantly disrupt public transport options,
• allowing passengers to bypass traffic.

According to UBS analyst Chen Xin, aerial sightseeing will likely evolve into a mature business model by 2030, though integration into existing transport systems remains uncertain due to battery performance, vehicle safety, and necessary legislative frameworks. Despite challenges, the low-altitude economy has the potential to generate several trillion yuan in business.

Leading Companies in eVTOL Development

Key players such as EHang Intelligent and AeroHT are spearheading the development of flying vehicles. In addition, AeroHT announced a $150 million investment to expedite the commercialization of its flying car priced at $200,000.

Both Germany's Lilium and U.S.-based Joby have made significant financial strides, raising substantial funds via SPAC deals in 2021 to bolster their projects targeting corporate clients as they design the next-gen flying cars for individual consumers.

The collaboration between AeroHT and the Panyu government in Guangzhou marks a significant step in creating infrastructure for flying cars to pave the way for future mobility solutions.