A dramatic accident unfolded during a rehearsal for the Changchun Air Show this week, when two XPeng AeroHT manned electric vertical takeoff and landing (eVTOL) aircraft collided midair while performing a formation flight. One of the aircraft crashed and caught fire upon landing, sending thick black smoke billowing across the runway.
According to the company, the crash was caused by insufficient distance between the two flying vehicles, leading to unintended contact. One passenger was injured and taken to the hospital, but their condition is reported to be non-life-threatening.
The incident has cast a shadow over XPeng AeroHT's ambitious plans for its so-called "land aircraft carrier," a flying car platform that has reportedly received over 5,000 preorders. The company aims to begin deliveries in the second half of 2026.
In the wake of the accident, Chinese social media was flooded with renewed debate over the safety of the country's "low-altitude economy," a policy push aimed at commercializing air mobility technologies such as drones and eVTOLs. While XPeng has positioned itself as a leader in the emerging field, the crash has underscored the operational and regulatory hurdles that still lie ahead.
China's low-altitude economy
China's low-altitude economy — encompassing both manned and unmanned aviation activities below 3,000 meters — is poised for rapid expansion, driven by commercial applications ranging from aerial tourism and logistics to agriculture and emergency response. Government support and industry investment are accelerating momentum in what Beijing considers a strategic emerging sector.
According to China Daily, experts say the burgeoning market, powered by advances in eVTOL aircraft and drone technologies, could help ease urban traffic congestion while creating new engines of economic growth. Yet they caution that regulatory gaps and infrastructure shortcomings still pose significant challenges to scaled adoption.
The low-altitude economy offers enormous potential, not just in terms of transportation, but as a transformative platform for regional development and smart mobility, said Hu Huazhi, CEO of EHang Holdings, a leading player in China's urban air mobility sector.
As of the end of 2023, China's low-altitude economy was valued at over CNY500 billion (approx. US$70 billion), and the Civil Aviation Administration of China (CAAC) projects it will grow to CNY2 trillion by 2030. Low-altitude operations in China encompass areas such as air tourism, passenger air travel, general aviation services, scientific research, education, and more.
By the end of 2023, China already had 689 general aviation companies, 3,173 registered general aviation aircraft, and 451 general aviation airports.
Commercial momentum, but regulatory catch-up needed
The recent surge of interest in unmanned aerial vehicles (UAVs) and eVTOLs has spurred investment from both state-owned and private companies. But industry analysts stress that safe, sustainable growth will depend on clearer rules for airspace access, improved certification processes, and accelerated construction of ground facilities.
One example of progress is EHang's EH216-S, an autonomous two-seater eVTOL, which recently received one of China's first batches of Air Operator Certificates for pilotless human transport. This milestone allows the company to launch commercial sightseeing and urban flight services in Guangzhou and Hefei, with passengers able to book rides.
In August, EHang's VT20 series completed a cargo delivery route in the Guangdong-Hong Kong-Macao Greater Bay Area, flying 83 kilometers in just over 45 minutes. The flight marks a significant boost in logistics efficiency, cutting travel time between Zhuhai and Guangzhou by up to 40 minutes compared to traditional road transport.
These initiatives reflect growing demand for practical applications of low-altitude flight, even as regulatory and operational frameworks remain in development.
From prototype to market: China eyes global leadership
As geopolitical tensions and shifting supply chains continue to reshape the global tech landscape, China's early investment in low-altitude infrastructure — from UAV regulation to localized air mobility zones — positions it as a serious contender for global leadership in next-generation aviation, much like it has achieved in the electric vehicle industry.
However, the road ahead depends heavily on building public trust, ensuring operational safety, and aligning with international regulatory standards. The recent incident has underscored both the safety concerns and the practical challenges that remain. As commercial activity intensifies in the airspace below 3,000 meters, establishing the rules of flight may become just as critical as developing the aircraft themselves.
Article edited by Jack Wu
