In a scene straight out of science fiction, a passenger cabin equipped with 16 propellers rose smoothly to 50 meters above an industrial zone in Guangzhou. This was not a movie set, but a demonstration by EHang, a Chinese company that in March became the world's first eVTOL (electric vertical take-off and landing) maker to receive a licence for commercial passenger flights. This milestone marks the accelerating take-off of China's ambitious 'low-altitude economy'.
From Sci-Fi to Sky-High Reality
While flying cars are still prototypes elsewhere, in China they are transitioning to commercial service. EHang plans to start offering public flights soon in Guangzhou and Hefei. The vision extends beyond passenger transport. In Shenzhen, office workers like Huang Jieling are already receiving their lunch orders via drone from food-delivery giant Meituan. "I didn't think takeout, which is very cheap, would be delivered by drones," admitted the 24-year-old e-commerce worker.
The Chinese government is vigorously promoting this sector, defining the low-altitude economy as a proliferation of airborne devices operating below 1,000 meters. The goal is to create a futuristic industry for China to dominate, mirroring its strategy in electric vehicles. The Civil Aviation Authority of China estimates the sector will hit a turnover of 1.5 trillion yuan ($208 billion) by the end of this year, soaring to 3.5 trillion yuan by 2035.
Drones Populate the Skies, Fueled by Policy
The growth is staggering. By the end of 2024, 2.2 million civilian drones were operating in China, a 455% increase in five years. Their uses are diverse:
- Meituan delivered over 200,000 meals by drone in 2024, nearly double its 2023 numbers.
- Drones delivered around 2.7 million packages (excluding meals) last year.
- China Post uses them for island deliveries in Fujian.
- They transport blood to hospitals, spray farmland, fight fires, and monitor borders.
This boom is a direct response to top-down policy encouragement. In early 2024, Premier Li Qiang designated the low-altitude economy a key growth engine. In December, the powerful state planning agency created a dedicated department to foster it, a rare move signaling high priority. Six cities, including Shenzhen and Hefei, have been granted autonomy to open airspace below 600 meters for commercial use, a significant shift in a country where most airspace is militarily controlled.
Shenzhen, a pioneer, has built nearly 500 drone terminals and approved 250 delivery routes, enabling over 776,000 drone deliveries last year. Mao Yinian, Meituan's drone delivery executive, revealed the grand vision: "We will have a network of many, maybe thousands, of sending or receiving points in a city like Shenzhen." The firm aims for drones to handle 10% of its total deliveries within 5-10 years.
The Race for the Flying Car Future
The flying car segment, though less mature, is also gaining altitude with state endorsement. Luo Jun of the China Low-Altitude Economic Alliance predicts at least 100 eVTOL firms in China by 2030. Major players are entering the fray:
- Xpeng's subsidiary AeroHT has designed a six-wheel EV with an eVTOL in the boot, slated for mass production in 2025 at under 2 million yuan. It has over 4,000 orders.
- State-owned carmakers and even Hongqi, maker of official limousines, are unveiling prototypes.
- Valuations of private eVTOL firms have jumped significantly.
EHang's CEO, Hu Huazhi, passionately argues for three-dimensional urban mobility. He gives the example of Beijing: a 30km trip across the city's fifth ring road takes an hour by car but just ten minutes by air. "Short-distance flights within the city will be the largest market in the future," he asserts. While point-to-point urban flights are still a year away, EHang sold 216 aircraft last year, mainly for tourism ventures backed by local governments.
Analysts believe the low-altitude economy has strong potential because it leverages China's existing industrial strengths in battery manufacturing and EV supply chains. Furthermore, the regulatory approach is notably nimble. "You have to have a policy that can match whatever technical progress that is being made on the ground," says Mao Yinian of Meituan. This agility, combined with high consumer acceptance—86% of Chinese consumers are keen on drone delivery versus 53% of Americans—allows for rapid iteration and commercialization.
However, challenges remain. The economics of eVTOLs are unproven, with several Western firms recently going bust. In China, much investment comes from state funds, which may prioritize policy signals over market viability. The national planning agency has warned against localities "blindly following trends" and creating redundant infrastructure, urging a coordinated "one country, one chessboard" approach.
Despite these hurdles, China's skies are set to become busier. As the U.S. administration issues orders to accelerate its own drone and eVTOL development to ward off foreign competition, China is pushing ahead. For EHang's Hu Huazhi, the future is already here: "The era we are in now is already the future era referred to by science-fiction movies."
