China’s flying car start-ups take their case to the skies

{"text":[[{"start":10.63,"text":"The white egg-shaped drone started with a flutter and then a whirr as it lifted its sole passenger about 20 metres into the air, hovering for about a minute before returning to the ground."}],[{"start":22.78,"text":"The recent demonstration in southern China’s Guangzhou showcased the technology of flying taxi maker EHang, which this year became the world’s first company to receive approval from its national regulator to operate unmanned passenger flights on tourist routes."}],[{"start":41.010000000000005,"text":"“We believe [airspace] below 1,000 metres . . . is currently humanity’s most under-developed natural resource,” said company vice-president He Tianxing, referring to the height at which many drones fly."}],[{"start":54.96000000000001,"text":"EHang hopes to start selling tickets soon for short sightseeing trips in Guangzhou and Hefei — the two cities where it has received approval to operate such flights — and eventually expand into public transport, logistics and emergency services."}],[{"start":72.64000000000001,"text":"Proponents of electric vertical take-off and landing (eVTOL) aircraft envisage a future where cheap, battery-powered helicopters revolutionise transport and logistics between and within cities. Analysts say China’s flying car sector is the world’s most advanced, driven by the country’s dominance of battery production and supportive regulation."}],[{"start":97.93,"text":"Globally, however, the sector has been frustrated by years of false starts, regulatory hurdles and safety concerns. Regulators have to unpick thorny issues such as which routes vehicles can take, how to deal with crashes and potential noise pollution from hundreds of small helicopters flying over densely populated areas."}],[{"start":120.63000000000001,"text":"On Tuesday, two eVTOL aircraft by Chinese carmaker Xpeng collided during a demonstration flight in north-east China, with one catching fire while landing. Xpeng’s flying car unit Aeroht said all personnel involved were safe and that it was investigating the cause."}],[{"start":null,"text":""}],[{"start":140.46,"text":"While paid tourism flights will be a major commercial milestone, analysts said the most compelling example of large-scale deployment would be flying taxis, which hinges on officials resolving the complexities of urban flight and companies proving the real-world utility of their products."}],[{"start":159.74,"text":"“To really get to be profitable . . . they need to ramp up volume,” said Neil Beveridge, an analyst at wealth manager Bernstein. “To ramp up volume they need to start showing that they can fly passengers.”"}],[{"start":173.22,"text":"Bernstein analysts estimate the global market for urban air mobility will be worth nearly $24bn a year by 2030, up from about $5bn last year. China’s state planner has established a department dedicated to developing the sector, prompting local governments to begin laying the groundwork for flying cars."}],[{"start":197.41,"text":"The southern tech hub of Shenzhen plans to have 1,200 landing pads for low-altitude aircraft by next year. Guangzhou last year committed to investing more than Rmb10bn ($1.4bn) on developing infrastructure for the sector by 2027, including the construction of more than 100 landing pads."}],[{"start":220.35,"text":"A growing number of carmakers, including GAC, FAW and Geely, have unveiled plans to use their battery and motor technologies to produce models."}],[{"start":231.24,"text":"“Funding has increased a lot in the past year after the government released a series of supportive policies,” said Jun Jiang, co-founder of TCab, a flying car start-up in Shanghai. “We’re seeing more investment and even EV suppliers entering the aerospace sector.”"}],[{"start":250.02,"text":"China’s hopefuls are participants in a global race that has been marred by missed milestones and liquidity issues. Several start-ups, including German developers Lilium and Volocopter, have filed for bankruptcy. California-based Joby Aviation, a leading US group, inched closer to commercial deployment this year after completing piloted test flights in Dubai."}],[{"start":274.91,"text":"One advantage Chinese producers have is price, said Bernstein’s Beveridge. “Two million dollars is out of the reach of the normal person. But if it’s Rmb2mn . . . then it’s something you can see being used,” he said, adding that traditional helicopters typically cost about $5mn."}],[{"start":293.74,"text":"Prior to this week’s crash, more than 4,000 people had placed pre-orders for Xpeng’s Land Aircraft Carrier, a silver van with a two-seat, battery-powered helicopter attached. Xpeng’s flying car unit Aeroht expects to start mass-producing the Rmb2mn vehicle next year."}],[{"start":314.59000000000003,"text":"Wang Tan, vice-president of Aeroht, said the product was initially designed to appeal to affluent travel enthusiasts but could be broadened to search-and-rescue and medical transport."}],[{"start":326.63000000000005,"text":"While companies are demonstrating the ability to develop working aircraft, some warn that mass adoption remains years away."}],[{"start":334.91,"text":"“China has the largest number of flying car players in the world, and the sector is currently experiencing a surge in financing activity,” said Sun Kewen, chair of Chinese mapping company MXNavi, which provides location services to autonomous cars and drones. “However, a problem . . . is that they heavily focus on the aircraft itself, rather than the potential applications.”"}],[{"start":361.06,"text":"Eugene Hsiao, an analyst at Macquarie, said eVTOL companies would only prove their value to investors by demonstrating large-scale use cases, adding that it was likely to take at least five years for even a “small degree” of commercialisation to take root."}],[{"start":379.14,"text":"“It’s only meaningful if it’s going to be in the robotaxi service, not: ‘I’m going to have a handful of drone-type vehicles at tourist hotspots,’” he said."}],[{"start":390.19,"text":"Back in Guangzhou, He of EHang conceded that the age of flying taxis could be a long way off, pointing to the fact that it took decades for aeroplane manufacturers and regulators to develop a complete civil aviation system."}],[{"start":405.84,"text":"“The complexity of future low-altitude flight — including realising normalised air transport flights within cities — is much greater,” He said. “It will be more complicated than everyone thinks.”"}],[{"start":420.72999999999996,"text":"Additional reporting by Eleanor Olcott in Shanghai"}],[{"start":432.66999999999996,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1758183943_5358.mp3"}