Auto Industry Takes Flight in Low-Altitude Economy

In recent months, the concept of flying cars has transitioned from mere science fiction to a burgeoning reality, significantly gaining traction among automotive manufacturers across the globeA notable advancement was made on December 18, when GAC Group announced the launch of its new flying car brand, GOVY, which unveiled its flagship hybrid wing vehicle, the GOVY AirJetThis marks a pivotal moment for GAC, whose flying car team was established merely three years ago, yet is poised to make significant strides in urban mobility.

Coincidentally, on the same day, Changan Automobile disclosed plans to engage in forward-looking research on flying vehicles, collaborating with related companiesChangan had previously intimated that by 2026, it aims to introduce both low-altitude aircraft and flying cars into its product lineup, reflecting a remarkable investment in the future of transportation.

Current estimates from the Low Altitude Economy Research Institute reveal that besides GAC and Changan, other automotive giants like Geely, Xpeng, Chery, Toyota, and Volkswagen have also plunged into the low-altitude economy landscape, either through investments or collaborative initiatives

The question lingering in the air is—why are these automotive manufacturers racing to "take to the skies," and what does the future hold for this new avenue?

An Influx of Automotive Players into the Low-Altitude Economy

In the past two years, the allure of the low-altitude economy has attracted numerous enterprises, including established automakersData from the China Investment Industry Research Institute indicates that there are over 800 eVTOL (electric Vertical Take-Off and Landing) vehicle development companies globallyThese organizations can be broadly classified into three categories: innovative tech companies like Joby, Archer, and EHang, legacy aviation giants like Boeing and Airbus, and lastly, car manufacturers such as General Motors, Hyundai, and Geely, who now find themselves venturing into this new terrain.

Notably, during Chery's Global Innovation Conference on October 18 this year, the company showcased a tri-body hybrid-wing flying car

This innovative design, devoid of traditional driving mechanisms like steering wheels and pedals, is intended for autonomous operation in both flying and driving modes and successfully completed its inaugural test flight, covering a distance of approximately 80 km.

Meanwhile, GAC's GOVY AirJet features an impressive configuration with eight rotors and dual ducted fans coupled with a multi-redundant power and control systemExpected to achieve more than 200 km of range and equipped for 30-minute rapid refueling, it promises advancements in electric mobilityWith the integration of GAC's all-solid-state batteries, this vehicle may even elevate its range to 400 km in the future.

GAC Group's General Manager, Feng Xingya, emphasized the relevance of flying cars, stating that as urbanization accelerates and population density increases, there’s a growing need for efficient and personalized transportation

Traditional travel methods are encountering significant challenges, and low-altitude travel could offer innovative solutions to these issuesThe external dynamics within the auto industry also align well with this emergent sector, facilitating a natural evolution toward flying automobiles.

As GAC's head of flying car R&D, Su Qingpeng explained, leveraging existing expertise in electrification and automation technologies can provide a competitive edge in transforming ground transportation into a three-dimensional paradigmThe integration of established electric vehicle technologies into flying counterparts, particularly in batteries, onboard equipment, and navigation systems, is expected to represent 70% of the overall application.

At the 2024 World Artificial Intelligence Conference, a prominent figure from Yufeng Future, Sheng Liang, highlighted transformational prospects stating, “When new energy converges with aviation, it propels the creation of a low-altitude economy from scratch

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This represents a revolutionary shift.” He argued that the influence of the new energy vehicle sector is profound, equipping low-altitude travel with a semblance of feasibility by addressing the inherent issues of safety, efficiency, and cost that have long plagued the industry.

When Will These Ventures Be Profitable?

Despite bright prospects, flying cars present a financial burden for automakers exploring this realmThe industry is keenly interested in determining when profitability will materializeWhile the future of eVTOL appears promising, the path toward large-scale commercialization is laden with challenges, including regulatory certifications, application scenario explorations, and cost considerations.

For instance, obtaining airworthiness certification is a fundamental prerequisite for the commercial operation of eVTOL designs

Professionals in the flying car sector assert that three primary certificates must be secured before any aircraft can commence operations: Type Certificate (TC), Production Certificate (PC), and Airworthiness Certificate (AC).

The TC serves as the aircraft's "birth certificate," granting authorization for new designs intended for commercial deploymentWithout it, the aircraft cannot enter the market legallyThe PC certification indicates that the applicant has established a comprehensive quality system for aircraft productionLastly, the AC certificate verifies that a specific aircraft meets approved designs and is deemed safe for operation.

According to executives from leading eVTOL companies, the TC certification presents the most formidable barriers, representing merely the first of 200 steps towards full compliance

Only upon successfully navigating this extensive process can companies secure a TC—a prerequisite for subsequent certifications.

Companies like Geely, Xpeng, and GAC have publicly outlined their respective timelinesGeely's affiliated WoFei Changkong aims to achieve market authorization by early 2026, targeting commercial deployment under typical conditions after aircraft deliveryIn November, Geely’s Chief Product Officer revealed that they are in the third phase of obtaining certification, set to complete this stage by year-end, entering the final phase by the following year.

Xpeng Huitian has also ramped up its activities, with its debut flying vehicle, termed the "land carrier," set for pre-orders in the fourth quarter of this year, anticipating mass production in 2026. Differing from competitors that target B2B sales, Xpeng plans to market its flying cars directly to consumers, with an anticipated price not exceeding 2 million yuan.

GAC's newly established GOVY brand aims for airworthiness certification by 2025 while preparing manufacturing lines and initiating pre-orders—progressing towards the realization of low-altitude travel commercialization.

Acknowledging the sensitivity around investment and profit, Wu Jian, head of GAC's flying car team, confirmed their commitment to operating within a conservative financial framework