April 1, 2025: In a groundbreaking move, China has officially approved autonomous flying taxis for commercial use, marking a significant leap in its low-altitude economy. The Civil Aviation Administration of China (CAAC) has granted air operator certificates to two companies—EHang Holdings and Hefei Hey Airlines—allowing them to operate pilotless passenger drones, or "flying taxis." This approval clears the way for the companies to launch commercial services, initially focusing on urban sightseeing tours, which are expected to be the first application for this emerging technology.
The approval follows a series of earlier regulatory milestones, including the type certificate, production certificate, and airworthiness certificate, which were awarded to both companies. These certifications pave the way for wider commercial use of autonomous flying taxis, with experts predicting that low-altitude tourism will serve as the beginning of this new industry. According to a report by Citic Securities, EHang's urban sightseeing tours could play a pivotal role in accelerating the development of the sector.
The Chinese government views the low-altitude economy as a key driver for the country's future growth. Along with flying cars, drones, and blimps, the sector is expected to complement innovations in artificial intelligence, biomanufacturing, quantum computing, and 6G networks. Cheng Bolin, vice president of the low-altitude unit at the China Information Association, emphasized that this new industry will be an essential engine for the high-speed development of China’s economy.
EHang has been at the forefront of this innovation, with its EH216-S model being China’s first mass-produced flying taxi. The EH216-S is a fully electric, two-seater vehicle equipped with 16 propellers and a carbon fiber fuselage. It is capable of reaching speeds of 100 km/h and can fly at altitudes of up to 10,000 feet. The EH216-S operates autonomously, removing the need for a human pilot, and is designed for a range of applications, including air taxi services, aerial tourism, airport shuttles, and cross-island transport.
The low-altitude economy is poised to become a massive market. According to research by Hurun, the sector is projected to be worth 1.5 trillion yuan by 2025 and could grow to 2.5 trillion yuan by 2035. As the flying taxi industry heats up, Chinese startups like EHang are competing with traditional automakers such as Xpeng and Geely, as well as global aviation giants like Boeing, Airbus, and Embraer, all of which are eyeing the potential of China’s rapidly growing market.
Looking ahead, with continued policy support for the low-altitude economy, competition in the sector is expected to intensify, setting the stage for further innovations in urban air mobility and transforming the way people travel in the future.