8 months ago
China's Low-Altitude Economy Takes Off
China is making big strides in using drones and flying cars for everyday tasks.
The government is pushing for a 'low-altitude economy' where these vehicles can deliver food, transport people, and provide other services.
Companies like EHang and Meituan are leading the way, with EHang getting the first license to carry passengers in flying cars and Meituan delivering over 200,000 meals by drone in 2024.
The government is supporting this growth by creating new rules and infrastructure.
While there are some concerns about safety and profitability, the low-altitude economy is expected to grow rapidly, reaching 1.5 trillion yuan by the end of 2024 and 3.5 trillion yuan by 2035.
This could make China a leader in this new industry, just as it has become a leader in electric vehicles.
EHang became the first eVTOL-maker to receive a license to carry passengers commercially in March 2024.
Meituan delivered over 200,000 meals by drone in 2024, almost double the number from 2023.
The Chinese government is promoting the low-altitude economy as part of its growth strategy, with a turnover expected to reach 1.5 trillion yuan by the end of 2024 and 3.5 trillion yuan by 2035.
China has 2.2 million civilian drones operating around the country by the end of 2024, a 455% increase in five years.
Companies like Xpeng are developing flying cars, with plans to enter mass production in 2025.
- Who
- Chinese government, companies like EHang and Meituan, and investors
- What
- Development and commercialization of low-altitude economy including drones and flying cars
- Where
- Primarily in China, with a focus on cities like Guangzhou, Hefei, Shenzhen, and Mianyang
- When
- Ongoing, with significant milestones in 2024 and plans extending to 2035
- Why
- To foster a futuristic industry for China to dominate, leveraging existing strengths in electric vehicles and batteries, and to spur economic growth
Key facts
- EHang
- First eVTOL-maker to receive a commercial passenger license
- Meituan
- Delivered over 200,000 meals by drone in 2024
- Low-Altitude Economy
- Expected to reach 1.5 trillion yuan by 2024 and 3.5 trillion yuan by 2035
- Civilian Drones
- 2.2 million operating in China by the end of 2024, a 455% increase in five years
- EHang's Share Price
- Up by about half over the past two years
- Xpeng's Flying Car
- Expected to enter mass production in 2025, costing less than 2 million yuan
- Meituan's Drone Deliveries
- Over 520,000 orders delivered since 2021
- Chinese Drones
- Delivered around 2.7 million packages in China in 2023
Quotes
Mao Yinian
Executive in charge of drone delivery at Meituan
“The average pilot today in our system can oversee hundreds of meals delivered a day. You’re never going to get this with human riders on e-scooters”
livemint.com
“The grand vision is that we will have a network of many, maybe thousands, of sending or receiving points in a city like Shenzhen”
livemint.com
Hu Huazhi
CEO of EHang
“Short-distance flights within the city will be the largest market in the future”
livemint.com
“The era we are in now is already the future era referred to by science-fiction movies”
livemint.com
Huang Jieling
A 24-year-old e-commerce worker
“I didn’t think takeout, which is very cheap, would be delivered by drones”
livemint.com
Luo Jun
Head of the China Low-Altitude Economic Alliance
“By 2030, China will have at least 100 eVTOL firms”
livemint.com
Qiao Dong
Analyst at Yunhe Capital, an investment firm
“Why can our low-altitude economy quickly generate strong explosive power? One very important reason is that we have accumulated a lot in the new energy industry, especially in cars, in the past few years”
livemint.com
Robin Riedel
Analyst at McKinsey
“There’s a little bit more willingness to experiment in China versus in North America and in Europe”
livemint.com
Sources
Related news
UN Warns Rising Seas Put Millions in South Asian Deltas
China Transforms Banks and Nightclubs Into Marriage Registry Offices
Delhi Airport Ranks 11th Among World’s Busiest Airports
China’s Viral Niu Lai Turns Mockery Into Box-Office Sensation
Paris tops workcation ranking, with Bangkok and London close behind
