EHang Seals ‘Flying Car’ Factory Deal as Orders Spike
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Passenger-drone maker EHang Holdings Ltd. will boost its production capacity through a tie-up with a carmaker and a state-owned enterprise, as orders grow rapidly amid government support for the “low-altitude economy.”
The agreement will see EHang, Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) and Hefei Guoxian Holdings Co. Ltd. jointly establish a factory in Hefei to make pilotless electric vertical takeoff and landing (eVTOL) vehicles, EHang said in a statement Tuesday.
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- EHang Holdings Ltd. is partnering with Anhui Jianghuai Automobile Group and Hefei Guoxian Holdings to establish a factory for pilotless eVTOL vehicles in Hefei, boosted by government support for the "low-altitude economy."
- EHang delivered 216 EH216-S drones in 2024, marking a 315% year-on-year increase, spurred by municipal efforts to promote drones in transportation and logistics.
- The Chinese government has prioritized the development of the low-altitude economy, launching trials and commercial use of eVTOLs, with plans for wider autonomous drone use by 2035.
- EHang Holdings Ltd.
- EHang Holdings Ltd. is a passenger-drone maker collaborating with Anhui Jianghuai Automobile Group and Hefei Guoxian Holdings to expand production of eVTOL vehicles in Hefei. Boosted by Chinese government support for the "low-altitude economy," EHang's EH216-S drone obtained airworthiness certification in 2023, leading to a 315% sales increase in 2024. The company plans to build more factories and support China's eVTOL commercial use goals.
- Anhui Jianghuai Automobile Group Corp. Ltd.
- Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) is a car manufacturer involved in a partnership with EHang and Hefei Guoxian Holdings to establish a factory in Hefei for producing pilotless eVTOL vehicles. JAC contributes its expertise in manufacturing and supply chain management to the project. This collaboration highlights JAC's role in advancing China's low-altitude economy by helping produce innovative transportation solutions.
- Hefei Guoxian Holdings Co. Ltd.
- Hefei Guoxian Holdings Co. Ltd. is a state-owned enterprise involved in a joint venture with EHang and Anhui Jianghuai Automobile Group Corp. Ltd. to establish a factory in Hefei for producing electric vertical takeoff and landing (eVTOL) vehicles. The company provides resource integration capacity for the project, supporting the growing low-altitude economy, which includes the use of drones and eVTOL vehicles in various industries.
- Guangzhou Automobile Group Co. Ltd.
- In February 2024, EHang inked a deal with Guangzhou Automobile Group Co. Ltd., providing technology to help develop their own eVTOL project.
- Chongqing Changan Automobile Co. Ltd.
- Chongqing Changan Automobile Co. Ltd. is an automaker that entered into a collaboration with EHang in December 2024. The partnership involves EHang providing technology to assist Changan Automobile in developing its own eVTOL project, similar to a deal EHang made with Guangzhou Automobile Group Co. Ltd. earlier in 2024.
- October 2023:
- Four Chinese ministries released a plan to put eVTOL vehicles into trial commercial use by the end of 2025.
- Late 2023:
- Hefei pledged $100 million to support EHang, including helping secure orders and build infrastructure.
- December 2023:
- The Civil Aviation Administration of China (CAAC) issued an airworthiness certificate for EHang's EH216-S.
- December 2023:
- The CAAC opened two bands of low-altitude airspace for use by drones, helicopters and eVTOL aircraft.
- February 2024:
- EHang inked a deal to provide technology to Guangzhou Automobile Group Co. Ltd. for an eVTOL project.
- November 2024:
- During an earnings call, EHang's Chief Operating Officer announced plans to build jointly owned factories in Beijing, Anhui, Shanxi province, and Guangxi Zhuang autonomous region.
- February 25, 2025:
- EHang announced an agreement to establish a factory in Hefei with Anhui Jianghuai Automobile Group Corp. Ltd. (JAC) and Hefei Guoxian Holdings Co. Ltd. to produce eVTOL vehicles.
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