BEIJING – A Chinese company is gunning to become the world’s first mass producer of flying cars in 2026, as the country ramps up a drive to develop its “low-altitude economy”.

The futuristic vehicle in question – a “land aircraft carrier” in which a passenger drone unfolds from the boot of a six-wheeled van – is developed by a subsidiary of electric carmaker Xpeng.

In theory, users would be able to drive themselves to a take-off site, detach the drone, climb in and navigate the rest of their journey by air. This potentially cuts down on travel time and makes remote areas more accessible.

It would form one part of a rapidly growing sector – that also includes drone deliveries and helicopter air shuttles – which an industry group estimates will be valued at some one trillion yuan (S$184 billion) in 2025 and more than thrice that by 2030.

Xpeng’s offering – which costs no more than two million yuan, and seats four in the car and two in the drone – made its first public flight at the Zhuhai Airshow in November 2024, and has reportedly received some 3,000 intended orders.

The company broke ground in October on a factory that will have the ability to produce 10,000 flying cars a year, once it is completed in the first quarter of 2026.

“In 2026, Xpeng plans to mass produce, for the first time, our modular flying car,” the company’s chairman and chief executive He Xiaopeng told reporters on March 8.

The company hopes to begin mass production in the second quarter of 2026 and commence some deliveries thereafter, he added later, in response to a question from The Straits Times.

This would put the company on track to become the first company “in China, and the world”, to mass produce and deliver such vehicles, he said.

The bullish projection came on the sidelines of China’s ongoing annual parliamentary meetings, where national priorities are discussed.

This year, artificial intelligence (AI) and emerging industries took centre stage at the meetings as China rides a wave of national pride in home-grown breakthrough AI start-up DeepSeek – and as it gears up for stiffer competition with the United States in this space.

The “low-altitude economy” is one such industry that policymakers hope to develop. The catch-all term refers to economic activity taking place in airspace below 1,000m. Commercial planes typically cruise at above 9,000m.

Use cases already rolled out in China, which is home to the world’s largest drone maker DJI, include unmanned drones that can deliver food to designated collection points or spray pesticides on crops.

Air shuttle routes – largely helicopter-operated – are also in place. And passenger drones that serve this function, or flying taxis, are also being trialled.

Xpeng chairman He Xiaopeng said the first batch of flying cars would probably be mainly for tourism or short-haul rescue missions.ST PHOTO: JOYCE ZK LIM

Developing the low-altitude economy has been a priority for China. It was termed a “new growth engine” and written into the government’s annual work report for the first time in 2024.

It received a second mention in 2025’s report, cast as an emerging industry whose “safe and sound development” China wanted to promote.

Over the past year, government agencies and local authorities have stepped up efforts to shape regulations and develop infrastructure to support the industry’s growth.

Meanwhile, automakers ranging from Xpeng to the state-owned GAC Group have been working on bringing flying cars to the market.

Xpeng’s Mr He said the road to the popularisation of flying cars was still “relatively long”, and one of the biggest difficulties was in having the necessary policies, laws and regulations in place.

“Right now, I see many problems,” he said. These include official certifications for the flying car both as a road vehicle and as an aircraft, rules governing how such vehicles should lift off, and licences for who could pilot it.

He brought suggestions on training and certifying passenger drone pilots to the parliamentary sessions.

Mr He said the first batch of flying cars would probably be limited to flying shorter distances, and used mainly for tourism or short-haul rescue missions.

The topic of flying cars also came up during a break-out session of the southern Guangdong province at the ongoing parliamentary meetings on March 6, when GAC chairman Feng Xingya raised suggestions to boost the industry.

Its prospects are vast, he said, but the sector is still at the “starting stage”.

He called for accelerating the construction of infrastructure, such as take-off and landing points for the cars, and for opening up more airspace resources, among other measures to support the industry.

The Chinese government looks poised to further step up the formulation and implementation of policies for the sector.

In December, the National Development and Reform Commission – the state economic planner – launched a new division dedicated to the development of the low-altitude economy.

Revisions to the civil aviation law are also under way, including to cater for the airspace which the sector needs.

Regulatory challenges are the biggest hurdle, but turning flying cars into a reality is not too far off “because now, the country is vigorously promoting the development of the low-altitude economy”, Mr Song Ding, a senior research fellow at the China Development Institute in Shenzhen, told ST.

And being an early mover in this space, he added, would enable China to “seize the initiative” on the international stage.

Joyce ZK Lim is The Straits Times’ China correspondent, based in Shenzhen.

Asia News Network/The Straits Times