Low-altitude economy nears commercial horizon

China's low-altitude economy is entering a critical transition phase.

New regulations, breakthroughs in electric vertical takeoff and landing aircraft, expanding manufacturing capacity and growing market demand have pushed the emerging sector into the spotlight as a potential driver of new quality productive forces.

Yet behind the ambitious trillion-yuan market forecasts and frequent technological milestones lies a fundamental challenge: transforming industrial strength and technological breakthroughs into sustainable commercial operations.

China's revised Civil Aviation Law, which took effect on July 1, 2026, introduced a dedicated chapter on low-altitude economic development, providing a legal foundation for the sector's expansion.

The new framework establishes classified airspace management for low-altitude zones below 300 meters and replaces some case-by-case approval procedures with more streamlined filing mechanisms for qualified flights.

The regulatory shift is expected to help move the industry from scattered regional trials toward a more standardized development model.

Along with the evolving regulatory environment, China has made notable progress in manned eVTOL commercialization, although most applications remain at an early demonstration stage.

EHang's EH216-S — a pilotless passenger-carrying aerial vehicle — became the world's first eVTOL model to obtain type certification, air carrier certification and production certification from Chinese civil aviation authorities.

The aircraft began commercial trials in Hefei, Anhui province, in August, allowing public reservations and flight experiences within designated demonstration zones.

The milestone marked one of the earliest attempts globally to move autonomous passenger aircraft toward commercial operation.

However, such services are still limited to specific parks and tourism routes rather than serving as a widespread urban air-mobility solution for daily commuting.

Another example is Aridge, formerly known as Xpeng Aeroht, which highlights a different challenge facing the industry: strong manufacturing capabilities but incomplete commercialization conditions.

In August, Aridge's flying car manufacturing base in Guangzhou, Guangdong province, produced its 1,000th set of 800-volt high-voltage electric propulsion units, demonstrating China's growing ability to manufacture key eVTOL components at scale.

The company's modular Land Aircraft Carrier has completed a series of tests, including automatic separation, independent flight and docking between its ground vehicle and detachable aircraft cabin.

It has attracted more than 7,000 global preorders and purchase intentions from individual consumers, government and enterprise customers, as well as overseas markets.

However, the aircraft has not yet obtained the suitable certificate required for formal manned commercial operations and its planned mass deliveries remain dependent on the completion of airworthiness reviews.