Low altitude economy gets strong start in Guangzhou Development District

Guangzhou Development District signed a flying car project investment cooperation agreement with XPeng AeroHT at the recent Conference on High-quality Development of Low Altitude Economy in Guangdong Province, which was held in Guangzhou.

An affiliate of automaker XPeng, the company's flying car research and development, intelligent manufacturing and sales centers will be established in the district. The district will provide comprehensive support for XPeng AeroHT on aspects such as land use, financing and application scenarios to drive the R&D, production and application of flying cars, aiming to create an industrial hub for the low-altitude economy.

The agreement is a large investment collaboration project in the Asian flying car sector. The intelligent manufacturing center is to use modern assembly lines for large-scale production, initially focusing on the air modules of modular flying cars called the "Land Aircraft Carrier".

The car, developed by XPeng AeroHT, can transition between land and flight modes and adopts a three-axle, six-wheel design. The product is currently in the trial stage, with the Civil Aviation Administration of China officially accepting the type certificate application for this product in March. It is expected to obtain the type certificate in 2025 and achieve production and delivery by 2026, according to media in Guangzhou.

The company's X2 flew across the Pearl River and Guangzhou's central business district in March, cutting the half-hour drive by road to six minutes in the air.

Low-altitude industry

The signing of XPeng AeroHT is the result of Guangzhou Development District's cultivation of the low-altitude industry ecosystem and demonstrates its attractiveness to investors.

More than 10 years ago, the district took a forward-looking strategic vision and planned the development of industries related to the low-altitude economy. EHang, established in 2014, has become a leading unmanned aerial vehicle company in the district. It is an important company in the wider urban air transportation sector and was nurtured by the district.

From October 2023 to April 2024, EHang's pilotless passenger aerial vehicles obtained a type certificate, a standard airworthiness certificate and a production license, initiating the pace of commercial operations.

Receiving the standard airworthiness certificate means getting an "entrance ticket" for commercial operations, local media reported. He Tianxing, vice-president of EHang, said that the aerial vehicles mainly operate in low-altitude airspace and can be applied in areas such as aerial tours, urban sightseeing, low-altitude commuting and emergency rescue.

Based on this company, the district attracted leading industrial enterprises in R&D, design and raw materials, parts manufacturing and integration, applications and services. It has formed a relatively complete industry ecosystem chain and gathered more than 50 upstream and downstream enterprises in the low-altitude economic industry.

In December 2023, the district held a global commercial flight demonstration event for EHang's passenger-carrying unmanned aerial vehicles, reaching agreements of intent for 15 low-altitude economic industry projects. They cover various fields such as complete vehicle manufacturing, aircraft propulsion motors and electricity systems, operational services and low-altitude system platforms.

Earlier this year, the district signed a four-party strategic cooperation agreement with the Guangzhou Airport Economic Zone's management committee, Guangzhou Automobile Group and EHang. They would make use of their respective advantages, share resources and jointly create a rich low-altitude industry chain ecosystem.

Currently, the district is home to 51 enterprises in the low-altitude economic sector, generating an annual output value of more than 13 billion yuan ($1.79 billion).Among them, nine have gone public. The district continuously expands market share through innovation.

The aggregation of upstream and downstream enterprises and the major projects aims to strengthen and supplement the low-altitude industry chain in Guangzhou Development District, accelerating the development of its low-altitude economy.

As a leader among industrial and innovative districts nationally, the district has other advantages. It boasts large industrial clusters, covering cutting-edge technology areas such as new materials, semiconductors, communications, sensors, drones and robotics. These sectors are a concentrated reflection of the region's core competitiveness and a key element in nurturing the low-altitude economy.

Comprehensive resources

In March, a drone carrying a "constant temperature box" took off from the Nangang area of Guangzhou Development District Hospital and flew to the hospital's Xiqu area 5 kilometers away, marking the official opening of a low-altitude medical distribution express route.

In addition to the "low-altitude plus medical" application, Guangzhou Development District has offered application scenarios in fields such as commuting, logistics, tourism and smart city management. By expanding "low-altitude plus" consumption scenarios, it is helping such enterprises achieve pilot commercialization and large-scale applications more quickly.

As a representative of new quality productive forces, the low-altitude economy has enormous potential to lead industrial upgrades and build new competitive advantages, becoming a new engine of economic growth.

As various regions are intensifying their development of the low-altitude economic industry, Guangzhou Development District uses comprehensive resources to attract investment, giving companies a sense of security in dimensions such as land, funds, policies and professionals, according to local media in Guangzhou.

In terms of land guarantee, the district has selected a construction site of about 5 square kilometers to build an industrial park. It integrates manufacturing, scientific research, inspection and testing, and flight services.

In terms of funding support, the district and Guangzhou Industry Investment Holding Group initiated the establishment of a low-altitude industry fund worth 10 billion yuan to accelerate the introduction and cultivation of low-altitude economic industrial projects.

In addition, the district has issued several measures on promoting high-quality development of the low-altitude economy, providing policy support to enterprises on aspects such as infrastructure and low-altitude flight services, with the highest reward reaching up to 30 million yuan.

The improvements to the low-altitude flight infrastructure network, its related flight guarantee system and the operation service system have become a key factor in the development of the industry. In response, Guangzhou Development District has planned low-altitude takeoff and landing points, flight routes and a low-altitude flying vehicle application verification center; built a related management service platform, promoted the development of R&D, manufacturing and operation management, and comprehensive support services for such vehicles.

The district aims to rely on its industrial foundation and leading enterprises and platforms to seize the opportunity of the low-altitude industry development, injecting driving forces into high-quality economic development.