Commercial operations with eVTOL aircraft in China are expected to be based on applications such as logistics and sightseeing for several more years before early market entrants secure the Part 135 approvals they will need to launch air taxi services. According to Louis Liu, CEO of Beijing-based advanced air mobility group DAP Technologies, it will likely be 2028 before the air taxi business model is approved for Chinese cities. However, many of these are already implementing plans to exploit the so-called low-altitude economy by encouraging early adoption of eVTOL vehicles and drones.

The regulatory key to early use cases being advanced by Chinese eVTOL start-ups is the CCAR 92 regulation, specifically developed by the Civil Aviation Administration of China (CAAC) for autonomous aircraft operations. Liu told AIN that EHang, AutoFlight, and others may get operating certificates this year, allowing them to expand support for customers—including a new breed of operators being established by city governments.

“Traditional airlines are not set up for sightseeing tourist flights, and this is why there is a better connection with [operators set up by] local authorities,” he explained. Recent examples of this approach include EHang's latest partnership in Shanghai and an agreement between AutoFlight and the Hangyang Investment Development Group in Wuhan.

Other early use cases that will precede the launch of air taxi flights include cargo deliveries and fire-fighting missions. “The low altitude economy involves any flights below 1,000 meters [3,280 feet] and includes both manned and unmanned aircraft,” Liu explained. 

Political momentum for China’s low-altitude economy comes from the top, with President Xi Jinping's personal endorsement. The Central Committee of the Chinese Communist Party has approved support, including substantial financial resources, prompting major cities to embrace the trend. Other metropolitan areas with active advanced air mobility (AAM) projects are Hefei, Guangzhou, Shenzhen, Taiyuan, Zhuhai, and Wencheng.

China's Competitive Advantages

“There are huge resources, and the Chinese market is very big with a huge population,” Liu said. “The eVTOL supply chain is already mature due to the strong electric vehicle and drone industries here, with [manufacturers of] electric motors, batteries, and airspace management systems. China also has competitive advantages with a deep and low-cost talent pool. There is much higher cost for engineers of the same quality in the West.”

DAP Technologies helps Chinese companies source equipment such as flight controls and powertrains from overseas. It also supports Western firms in accessing the Chinese market and buying batteries from lower-cost producers. The group—which consists of divisions focused on supply chains, engineering, global business, and consultancy—also provides technical support for the development of AAM, such as establishing equipment test benches for the CAAC.

Interestingly, one avenue that isn’t yet being pursued by the Chinese AAM sector is military applications for eVTOL aircraft—by contrast with the U.S., where the Pentagon has been supporting development work with contracts for private sector manufacturers, including Joby, Archer, and Beta Technologies. This is due to concern that defense connections could prove to be an obstacle to foreign sales in countries that are in strategic conflict with China and with tight export controls for military-use equipment.

“[Chinese] eVTOL manufacturers want to be able to sell aircraft worldwide, and so they won’t use them for military [purposes],” Liu said.

In his view, the most immediate and promising export markets for Chinese AAM technology are in the Middle East and Southeast Asia. He expects aviation regulators in countries such as Indonesia, Malaysia, and Japan to validate CAAC type certificates, circumventing the difficulty Chinese companies will have in getting FAA or EASA approvals.

Apart from EHang and AutoFlight, other Chinese companies making progress in bringing eVTOL aircraft to market include Aerofugia, which Liu predicted is set to get a type certificate in 2026 for its AE200 aircraft. Aerofugia, a subsidiary of the Geely automotive group, already has an order for 100 of the five-passenger vehicles from Chinese business jet operator Sino Jet.

ZeroGravity is developing a two-seat eVTOL called the ZG-One, plus a six-seat model designated ZG-T6 and an electric fixed-wing aircraft called the RX1E-A. Meanwhile, Shanghai-based TCab Tech secured $20 million in funding from a Middle Eastern investor for its four-passenger E20 eVTOL program last year.

Why Is the West Going Slower?

Almost 18 months after EHang secured the world’s first eVTOL aircraft type certificate, manufacturers in the U.S. and Europe still can’t be sure of reaching this milestone during 2025. According to Liu, China is consciously taking a different path to introduce AAM services, taking a sequence of steps that allows for development through limited early use cases.

“Western companies are facing more regulation that is restricting innovation,” Liu commented. He pointed out that the type certificate for EHang’s EH216-S vehicle was based on an accident frequency rate of 10^-6, equating to an accident every one million flights. By contrast, Europe’s EASA agency is insisting on a rate of 10^-9.

“This means the cost and time taken for a program in the West is much higher and longer,” Liu said. “So [to have an aircraft that could be] 1,000 times safer probably means costs of between 10 and 100 times more.”