EHang: A Leader in the Chinese Low-Altitude Economy, Analysis of Growth Potential and Competitive Barriers

1. Core Product Matrix

Since its establishment in 2014, EHang has been focusing on the R&D and manufacturing of autonomous eVTOLs, constructing a product matrix with diverse application scenarios of "intra-city + inter-city". It has developed two major product lines, the EH216 series and the VT series, while expanding into multiple niche areas such as firefighting, logistics, and smart city management, achieving comprehensive coverage from manned to cargo transport, short- to medium- and long-distance operations, and general-purpose to specialized applications.

A) EH216 Series: Core Carrier for Urban Low-Altitude Transportation

First unveiled by in 2016 as its first human-carrying pilotless eVTOL aircraft, the flagship EH216 Series focuses on short-to-medium-range low-altitude intra-city air mobility scenarios. Boasting a reliable, low-complexity multi-rotor configuration—featuring a 16-propeller design driven by 16 independent motors mounted on 8 arms—it ensures redundancy and flight safety, enabling stable, precise navigation and vertical takeoff and landing in urban airspace. Tailored to urban environments, it delivers a maximum flight range of 30km, flight time of 25 minutes, and speed of 130km/h, alongside fully autonomous, unmanned capabilities. The EH216-S, world’s first unmanned passenger-carrying eVTOL to secure the Type Certificate (TC), Production Certificate (PC), and Standard Airworthiness Certificate (AC) from China’s Civil Aviation Administration (CAAC), is widely used for aerial tourism, short-distance commuting, and more. Derivatives include the EH216-F firefighting version, which carries equipment to extinguish high-rise fires (overcoming traditional fire trucks’ height limitations), and the EH216-L logistics variant, suitable for urban express delivery and island supply to address ground transportation gaps in special scenarios.

EHang’s major source of revenue comes from deliveries of the EH216 series products since 2018 and EHang delivered 216 units of the EH216 series in 2024. As of December 31, 2024, it had delivered 453 units of the EH216 series products, including 433 units of the EH216-S (standard model), 9 units of the EH216-F (firefighting model) and 11 units of the EH216-L (logistics model), mainly operated on a limited trial basis in tourism locations in China, for testing, training, demonstration and trial operation purposes.

B) VT Series: For Expanding Intercity Travel Scenarios

To overcome the limitations of short-distance urban travel, EHang launched the VT35, a long-range, compound-wing autonomous aircraft designed for medium-to-long-distance applications such as intercity commutes, travel across islands, and connections in mountainous regions. The VT35 features a tandem-wing, two-seat configuration, equipped with eight distributed lift propellers for vertical take-off and landing, and a rear-mounted pusher propeller and fixed wings for cruise flight, offering a full-load range of approximately 200 kilometers. In March 2025, the VT35 officially entered the Type Certificate (TC) certification process of CAAC. Currently, purchase orders have been received from Anhui, Zhejiang, Hainan, with a unit price of RMB 6.5 million, and deliveries are scheduled to commence in the third quarter of 2025. More importantly, the VT35 can directly reuse the take-off and landing infrastructure of EH216-S, including urban locations such as parks, office building rooftops, and parking lots, which can all serve as "stops" for the VT35, enabling convenient point-to-point travel between city centers.

2. Core Competitiveness

EHang holds a market share exceeding 70% in China, significantly surpassing its competitors, due to its first-mover advantage in airworthiness certification, deep accumulation of technology, robust R&D and production capabilities, and local government support.

Leading Airworthiness Certification Progress

During the airworthiness certification process conducted by the Civil Aviation Administration of China (CAAC), the EH216-S underwent comprehensive and rigorous validation of its safety, airworthiness, performance, functionality, usability, and reliability. This involved more than 500 specific test items, over 40,000 test flights for adjustments, as well as formal conformity validation tests covering 65 major categories and more than 450 individual test items.

In October 2023, EHang secured the Type Certificate (TC) for the EH216-S from the CAAC—an industry-first for human-carrying pilotless eVTOL aircraft globally. This certification confirms that the EH216-S’s type design meets the CAAC’s safety and airworthiness standards, qualifying it for human-carrying commercial operations. Starting from December 2023, EHang began delivering the certified EH216-S, which is equipped with the Standard Airworthiness Certificate (AC) issued by the CAAC, to its customers. Building on this progress, EHang obtained the Production Certificate (PC) from the CAAC in April 2024, enabling the mass production of the EH216-S. in March 2025, Guangdong EHang General Aviation Co., Ltd. and its joint venture Hefei Heyi Aviation Co., Ltd. were granted the Air Operator Certificates (AOC) for EH216-S commercial operations by the CAAC, further advancing its commercial readiness. These certifications not only represent global firsts for this new category of human-carrying pilotless eVTOLs but also mark a landmark milestone for the commercialization of Urban Air Mobility (UAM). As of March 31, 2025, its human-carrying pilotless eVTOLs have accumulated over 66,000 safe trial or demonstration flights across 19 countries in Asia, Europe, and the Americas, with the majority of these flights conducted in China.

Furthermore, EHang actively promotes a global compliance strategy, engaging in extensive communication with civil aviation regulatory authorities in Thailand, the United Arab Emirates, Brazil, Spain, and other countries. EHang also participates in discussions on relevant topics within the International Civil Aviation Organization (ICAO), contributing to the development of global eVTOL regulatory standards.

Technological Leadership: Full Redundancy Technology System Centered on Safety

To ensure the safety, EHang adopts a full redundancy design and technologies in its products in order to eliminate single points of failure. Its pilotless eVTOLs feature a distributed electric propulsion configuration, delivering a safe and reliable propulsion system with redundant backups for all key components and sub-systems. In the event of a malfunction, the fail-safe mechanism embedded in its intelligent flight control systems continuously monitors operations in real time, enabling rapid responses to restore lost functionality through backup systems and ensuring flight safety at all times. Take the EH216 series as an example: it is equipped with 16 coaxial propellers, powered by 16 independent motors mounted on 8 arms. Its rigorous testing has confirmed that the aircraft can still land safely even if up to three propellers are intentionally deactivated in flight—though such a scenario is extremely improbable under normal operating conditions. Beyond the propulsion system, this multi-backup redundancy design is also incorporated into its electrical systems, sensors, flight control systems, communication systems, further enhancing the overall safety and reliability of its aircrafts.

Strong In-House and Collaborative R&D And Production Capabilities

EHang has established extensive collaborative partnerships with leading companies in the industry to jointly develop next-generation technological solutions, components, and products, aiming to further enhance the capabilities and expand the portfolio of its eVTOLs. Notable examples include its partnership with Chongqing Changan Automobile Co., Ltd., in December 2024, focusing on co-developing flying car-related products for the mass consumer market. In April 2024, EHang collaborated with Guangzhou Greater Bay Technology Co., Ltd. to develop fast-charging eVTOL batteries. EHang also cooperated with Shenzhen Inx Energy Technology Co., Ltd. since 2023 to co-develop high-energy solid-state lithium batteries for its eVTOL aircraft, which achieved a significant technological breakthrough in 2024, as flight tests demonstrated that the EH216-S’s flight duration was greatly extended from 25 minutes to over 48 minutes.

Ehang holds the distinction of being the world’s first eVTOL company to establish a dedicated production base with the capability to manufacture pilotless eVTOL aircraft. Yunfu Production Facility commenced operations in June 2021, with a current annual production capacity of 300 units for the EH216 series. Strategically located near a cluster of top-tier suppliers in China’s Pearl River Delta region, the facility has a planned total gross floor area of 24,000 square meters and employed 276 manufacturing team members as of December 31, 2024. In response to growing order demand, Ehang plans to expand production capacity through the Phase II expansion of the Yunfu Production Facility.

Local Government Support

In August, EHang signed an investment cooperation agreement with the Hefei Municipal Government to establish its VT35 series product headquarters in Hefei, jointly promoting the development of the low-altitude economy ecosystem. A multi-functional VT35 series product center will be established in Hefei, encompassing R&D, testing, manufacturing, airworthiness certification, supply chain management, sales, operations, and talent training. The Hefei government will provide EHang with comprehensive support of approximately RMB 500 million.

3. Future Revenue Growth Potential

EHang's current revenue relies primarily on hardware product sales (accounting for over 80%). However, with the full launch of commercial operations, continuous enrichment of the product portfolio, and gradual development of the global market, EHang is poised for multifaceted revenue growth, indicating significant long-term potential.

A) Domestic Commercial Operation

In December 2025, EHang initiated a reservation-based public flight service, signifying a substantial step in its commercial operations. With the advancement of domestic A-B route verification test flights, the improvement of ticketing systems, and the full implementation of operational qualifications, EHang will gradually achieve a business model upgrade from "equipment sales" to "equipment sales + operational services". Referring to the profit model of traditional air travel, operational services will generate continuous and stable ticket revenue, supplemented by value-added services such as flight maintenance and consumables sales, creating long-term revenue growth. Furthermore, the low-altitude economy pilot projects, undertaken in cooperation with local governments, will gradually encompass multiple scenarios including cultural tourism and sightseeing, short-distance commuting, and emergency rescue. Scaled operations are expected to further reduce costs and improve profitability. Management anticipates that 2026 will be a breakout year for the company's commercial eVTOL operations, with large-scale domestic implementation serving as the core engine of revenue growth.

B) Global Market Expansion

There is strong demand for low-altitude economy in regions such as Southeast Asia and the Middle East. Particularly in countries rich in tourism resources such as Thailand and the United Arab Emirates, there is an urgent need for aerial sightseeing and inter-island transportation, providing favorable opportunities for EHang's overseas expansion. EHang's sandbox program in Thailand has achieved phased progress. The Director of the Civil Aviation Authority of Thailand personally experienced a flight on the EH216-S in downtown Bangkok. CAAT plans to approve commercial eVTOL operations in Thailand within the next few months and aims to achieve large-scale commercial operation of 100 EH216-S autonomous eVTOLs in more than 20 sandbox areas in Thailand by the end of 2026. If EHang successfully achieves commercial operation in Thailand, it will provide a replicable pathway for market expansion into other Southeast Asian countries, such as Vietnam, Cambodia, and Malaysia. Furthermore, EHang is steadily progressing with compliance communication and market development in regions such as Europe and the Americas. Comprehensive global market expansion will provide sustained growth momentum for the company.

C) Capacity Release and Cost Optimization

With the trial production of the Phase II project of Yunfu Production Facility and the gradual completion of production facilities in Beijing, Hefei, and other locations, EHang's annual eVTOL production capacity will increase to 1,000 units, which can fully meet the order demand from domestic and international markets. Scaled production will effectively reduce unit manufacturing costs. Combined with continuous optimization of the supply chain, EHang's gross profit margin is projected to remain at 60% in the long term. Decreasing costs will further enhance the products' market competitiveness, promote the penetration rate of eVTOLs in the civil market, and establish a virtuous cycle of increased capacityà reduced costsàsales growthà improved profitability.

Conclusion

As a leader in the global low-altitude economy, EHang has built strong competitive barriers relying on its first-mover advantages in airworthiness certification, technology, R&D and production capabilities, and local government support. With the full explosion of domestic commercial operations and the gradual expansion into the global market, EHang is poised to enter a golden era of revenue growth. Although EHang is still at a loss currently, its profitability is expected to gradually improve with production capacity ramp-up and cost optimization. With the low-altitude economy becoming a national strategic industry in China, EHang is expected to continue leading the development of the industry, transforming its technological advantages into commercial value, and achieving long-term high-quality growth.