Hyderabad: China has reportedly taken the first step towards creating a commercial flying taxi industry. According to state-run news agency Xinhua, the Civil Aviation Administration of China (CAAC) has approved the country's first-ever passenger drones or flying taxis for commercial use.
Once the favourite child of science fiction movies, flying cars have yet to become a full-fledged reality, though several countries are conducting trials and private players have been showcasing working models of air taxis for years. These vehicles are expected to provide an alternate mode of travel, reducing urban traffic and the burden on the roads.
Two private players get the license for commercial air taxi operations
EHang Holdins and Hefei Hey Airlines have obtained air operator certificates, clearing both Nasdaq-listed companies to use unmanned aerial vehicles for commercial passenger services, such as sightseeing tours.
With the issuance of the air operator certificate, both Ehang Holdings and Hefei Hey Airlines have passed the final hurdle before the commercial operations of their respective passenger air taxi services. As per a report by Citic Securities, both the companies had already obtained the type certificate, production certificate, and airworthiness certificate.
🚀 EHang’s EH216-S eVTOL Operators Obtain Air Operator Certificates ✈️
— EHang (@ehang) March 30, 2025
EHang’s EH216-S eVTOL operators, EHang General Aviation and Heyi Aviation, have officially received China’s first-ever Air Operator Certificates (OC) for civil pilotless human-carrying aerial vehicles by the… pic.twitter.com/jqX74ETR8A
As per the report, EHang is eyeing the low-altitude tourism in China with the final regulatory hurdle out of its way. Calling it the beginning of a new business, the company said that its urban sightseeing tours can accelerate the development of the industry. Autonomous Electric Vertical Takeoff and Landing (eVTOL) vehicles can handle a wide range of use cases, meaning EHang can also use its commercial license to offer other services like airport shuttles and cross-island transport.
Last year in April, EHang became the first company in the world to receive a production certificate for the mass production of autonomous eVTOL vehicles in China for EH216-S. Announced in 2018, it is a fully electric, pilotless two-seater vehicle that features 16 propellers to achieve a maximum altitude of 10,000 feet (3,000 meters) and can cruise at a speed of 100 kmph.
China pushes for low-altitude economy
According to the South China Morning Post (SCMP), Chinese leaders have identified the low-altitude industry as a crucial emerging sector and driver of economic growth alongside industries like quantum computing, biomanufacturing, AI, and 6G mobile networks. Beijing has taken a series of steps to accelerate the development of a low-altitude economy, which includes delivery drones, blimps, and flying cars.
Last month, Cheng Bolin, vice-president of the low-altitude unit at the China Information Association, called the low-altitude economy a new growth driver. "It will be an important engine to push the high-speed development of China's economy," Bolin said
According to SCMP, research group Hurun cited CAAC data to suggest that China's low-altitude economy is predicted to be worth 1.5 trillion yuan (USD 207 billion) by 2025. Furthermore, it suggested that the industry is expected to grow and reach 2.5 trillion yuan by 2035. Hurun expects intense competition in the sector in the near future as the Chinese government continues to roll out policies supporting the low-altitude economy.
Air taxi development in India and the world
Countries like the UAE, Singapore, the US, and India are in advanced planning or testing phases of VTOL and air taxi services, with launches expected between 2025 and 2026. As countries around the world prepare for the low-altitude economy, private players are readying VTOL aircraft as manned or unmanned passenger drones. For instance, Hyundai Motor Group's Advanced Air Mobility company, Supernal, unveiled the S-A2 eVTOL concept at the Consumer Electronics Show 2024. The pilot-plus-four-passenger V-tail aircraft features a range between 40 km and 64 km, cruising at around 190 kmph at an altitude of 1,500 feet.
Last year, IndiGo's parent company (InterGlobe Enterprises) and US-based Archer Aviation announced plans to launch an all-electric air taxi service in India by 2026. Currently in the planning and regulatory approval stage, the service aims to connect areas like Connaught Place to Gurugram via eVTOL aircraft that can carry four passengers besides a pilot. Archer Aviation was said to supply 200 such vehicles, each having 12 rotters, for the service.
In India, several startups have been working on the development of VTOL aircraft. However, the air taxi policy in the country is currently in the drafting phase. The Directorate General of Civil Aviation (DGCA) is working on the guidelines, including the establishment of vertiports— specialised hubs for VTOL aircraft.
Last month, Andhra Pradesh-based startup Magnum Wings showcased its two-seater air taxi prototype V2, which can offer a range of 40 km and reach a top speed of 100 kmph at an altitude of 1,000 feet. The company is designing a three-seater X-4 model for long-distance travel as well, expected to provide a range of 300 km and a top speed of 300 kmph at an altitude of 20,000 feet.
Earlier this year, Sarla Aviation showcased a flying taxi prototype 'Shunya', developed in collaboration with Sona SPEED, at the Bharat Mobility Global Expo 2025 and Invest Karnataka 2025. The company plans further test flights and prototypes for the eVTOL aircraft with plans to announce the final product by 2028.
