China's low-altitude economy lifts off as EHang pushes eVTOL commercialization

by CHEN Yixuan

China's ambition to build a "low-altitude economy" — integrating drones, eVTOL aircraft and aerial logistics into everyday transport — is moving from policy concept to real-world testing. EHang Holdings Ltd (Nasdaq: EH), a leading Guangzhou-based eVTOL maker, unveiled its new VT35 long-range passenger model in Hefei, signaling progress toward commercial air mobility under China's evolving certification framework.

The VT35, weighing 950 kilograms with an 8-meter wingspan, can fly over 200 kilometers carrying 200 kilograms for more than an hour. Priced at 6.5 million yuan (about US$912,000), it targets government and corporate clients. Its composite and tandem-wing design allows take-off from compact sites such as parks and rooftops, according to Chief Operating Officer WANG Zhao.

The VT35 marks EHang's move beyond short urban hops toward intercity routes linking China's major economic clusters — a key step in expanding its commercial reach. The model is currently in the first stage of the Civil Aviation Administration of China's (CAAC) four-tier certification process — covering type, production, airworthiness and operation — required before aircraft can enter commercial service. Its earlier EH216-S model, certified in 2023, was the world's first autonomous passenger eVTOL to receive such approval.

EHang has raised about US$100 million from investors including Zhuhai Enpower Electric and Middle Eastern funds, adopting a "certification-first" approach before scaling production. Chinese rivals such as XPENG Aridge and AutoFlight are developing hybrid-wing and "flying car" concepts, while global players like Joby Aviation and Archer Aviation focus on adapting conventional aircraft designs and integrating piloted flight systems.

Municipal governments are key to turning policy into use cases. In August, EHang partnered with the Hefei government to base the VT35 program there and co-develop an urban air-mobility ecosystem. The city now hosts around 300 low-altitude companies, 180 take-off sites and 70,000 flight hours, according to Vice Mayor YUAN Fei.

EHang has also formed a joint venture, Heyi Aviation, with Hefei's state-owned capital to develop low-altitude passenger services. In March 2025, Heyi Aviation and EHang's general aviation arm obtained an Operation Certificate (OC) from the CAAC, marking a key step toward commercial pilotless flights.

The CAAC projects China's low-altitude economy will reach 1.5 trillion yuan (about US$210 billion) in 2025 and 3.5 trillion yuan by 2035. But analysts caution that fragmented oversight of certification and airspace management remains a major barrier to moving from concept to commercialization. Still, EHang, listed on Nasdaq since 2019, offers a glimpse of how China is beginning to turn the vision into a working transport network.