Financing and Applications Expand Across the Board as Low-Altitude Economy Firms Accelerate Global Market Competition

date
05/08/2025
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GMT Eight
Low-altitude economy enterprises in China are rapidly advancing in commercialization, financing, and overseas expansion, highlighted by landmark eVTOL logistics flights and significant international orders.

Ton-class eVTOL aircraft have now achieved offshore logistics missions, while frequent large-scale overseas orders and sustained policy support are propelling the sector forward. Recent developments among low-altitude economy enterprises demonstrate meaningful progress in commercialization, contract fulfillment, and financing, with industry momentum continually fueled by favorable regulatory tailwinds.

On August 3, Fengfei Aviation’s two-ton eVTOL model, CarryO, transported fruit and emergency medicine from a land-based launch site in Shenzhen to Platform 19-3, located 150 kilometers offshore in Huizhou. The nearly hour-long cross-sea flight marked a new milestone in eVTOL logistical application between land and sea. According to Ren Yongyi, Deputy Manager of the Coordination Department at the Shenzhen branch of China National Offshore Oil Corporation, this joint test by China National Offshore Oil Corporation, CITIC Offshore Helicopter, and Fengfei Aviation signifies a significant advancement in low-altitude emergency logistics, underscoring the transformative potential of the low-altitude economy in traditional energy sectors.

Earlier, on July 21, Fengfei Aviation’s cargo version V2000CG CarryO secured an Airworthiness Certificate from the Civil Aviation Administration of China, completing the three requisite certifications for commercial deployment. The aircraft has since been delivered to clients.

Additional signs of vitality within the sector continue to emerge. On July 15, XPeng Huitian completed a US$250 million Series B funding round to support the advancement of its flying car development, mass production, and commercialization. The company stated that construction of its flying car manufacturing facility has reached the equipment commissioning stage and is expected to complete in the fourth quarter, with mass delivery of the "land aircraft carrier" model slated for 2026.

On August 1, Tianyu Hangtong, a developer and manufacturer of large unmanned aerial systems, announced a new financing round amounting to several hundred million yuan, jointly led by Woyan Capital and Decent Investment. The capital will be directed toward the production and operations of its first-generation HY100 model and R&D for the next-generation HY200.

While domestic applications continue to expand, companies are also actively exploring overseas markets to capture orders and secure funding. On July 16, Time Technologies entered a US$1 billion purchase agreement with UAE-based Autocraft, which will acquire 350 E20 eVTOL aircraft and jointly promote regional commercialization in the Middle East and North Africa. On July 23, Volant Aerotech entered a three-party cooperation with Thailand-based Pan Pacific and AVIC Engineering. Pan Pacific will procure 500 VE25-100 Tianxing aircraft for inter-island transport and emergency services across Thailand, the Maldives, and other regions, while AVIC Engineering will support low-altitude infrastructure. The total contract value reached US$1.75 billion.

EHang Intelligent’s EH216-S, which holds the full suite of certifications, completed its first unmanned passenger flight in Indonesia at the end of June. The company reported ongoing commercial deployments across Spain, Japan, Thailand, the UAE, and Saudi Arabia. During the Paris Air Show, EHang signed agreements with U-Space service provider ANRA and Argentine aircraft manufacturer FAdeA to advance regional operations and localized production.

According to industry analysts, the current wave of international expansion is driven by lower market entry barriers in certain countries, where unapproved aircraft may be tested, and by the opportunity to rapidly raise capital through overseas orders to fund high R&D expenditures. Western Securities noted that each E20 aircraft in the Time Technologies-Autocraft agreement is priced at approximately US$2.8571 million. Though eVTOLs may not match humanoid robots in unit sales, their significantly higher unit value—30 to 500 times greater—offers strong market growth potential.

Xu Heyuan, Chief Expert at the China Academy of Information and Communications Technology, highlighted the low-altitude economy’s high technological intensity and strong catalytic potential across agriculture, industry, and services. As a key driver of new quality productivity, it plays a vital role in supporting the shift from traditional to innovation-driven growth. Tailored development strategies are critical for regional adaptation and effective industry integration.

According to data from Aviation Industry Network, Guangdong, Jiangsu, Sichuan, and Beijing are the top four regions in terms of drone and eVTOL enterprise presence, each housing over 30 related companies. Guangdong leads with a complete industrial chain and agglomeration of top-tier firms; Sichuan leverages its aerospace military heritage; Beijing benefits from supportive policy and top research institutions; Jiangsu’s robust manufacturing base supports scalable production.

On July 31, the Shenzhen Development and Reform Commission released a three-year infrastructure plan aiming to establish over 1,200 low-altitude landing sites and open more than 1,000 commercial air routes for cargo and passenger use by 2026. The plan includes a goal to cover over 70% of the city’s population with "2-hour intra-city, 4-hour inter-city" express aerial delivery and anticipates the sector’s output value to exceed RMB 130 billion.

Similarly, on July 23, five provincial-level departments in Hunan jointly issued a three-year action plan for high-quality development of the emergency equipment industry. The initiative outlines a “one body, two wings” structure focused on emergency response, monitoring, and protective equipment. It aims to cultivate a robust low-altitude emergency manufacturing cluster and implement demonstration projects such as a low-altitude monitoring network, command platform, and manned/unmanned collaborative rescue systems. The province targets RMB 100 billion in revenue from the emergency equipment sector by 2027, with annual growth projected at approximately 10%.

Industry observers suggest that China has formed a preliminary multi-tier regulatory framework for developing the low-altitude economy at both national and regional levels. As regulatory and policy instruments continue to evolve, regional strategies must prioritize alignment with local conditions and long-term positioning within the broader national landscape.