Xpeng AeroHT, an affiliate of Chinese electric vehicle (EV) maker Xpeng, will price its first flying car at around US$200,000, with delivery expected at the end of next year.

The company plans to mass-produce the flying car in the coming two years, with a target of selling 5,000 units, Wang Tan, co-founder and chief designer, said during a panel discussion at the South China Morning Post’s China Conference on Thursday.

“The first flying car delivered by Xpeng AeroHT will be in China next year,” he said. “First we will sell it in mainland China, and after that we will sell it globally. Maybe the Middle East, maybe Hong Kong. I think we’re going to have this opportunity.”

China’s low-altitude economy, referring to businesses operating aerial vehicles below 3,000 metres in altitude, has been on the rise since 2021 when the central government introduced policies and regulations to bolster the nascent sector. The market exceeded 500 billion yuan (US$69.5 billion) last year, and is expected to reach 2 trillion yuan by 2030, according to the Civil Aviation Administration of China.

A precise release date for Xpeng AeroHT’s flying car is not yet available, Wang said.

The company, founded in 2013, began developing the vehicle a decade ago. It has a research centre and testing base in Guangzhou, the capital of southern Guangdong province and the headquarters of Xpeng, as well as research labs in Shenzhen and Shanghai.

The so-called electric vertical take-off and landing (eVTOL) vehicle would provide an additional option for public transport and enable passengers to avoid traffic gridlock, He Xiaopeng, chairman of both Xpeng and AeroHT, told a media briefing at Auto China 2024 in Beijing in April.

“The government is very positive, supporting us with regulation and policies,” Wang said. “We still need to mature our technology to make sure our product is the safest aircraft. Today we have a lot of pilot zones in mainland China, and day by day in the future we will have more pilot zones. This is a very good beginning.”

The company developed all the eVTOL’s technology in-house, including the power train and flying control system, Wang said.

“Now AeroHT is the biggest flying car company in Asia,” he added. “We have 1,000 people. We’re going to deliver the best technology for our flying cars.”

Urban air mobility focuses on aerial connectivity in and around cities. Unlike many of its rivals that are aiming for corporate customers, AeroHT said it would target individuals as it explores efficient, safe and carbon-neutral mobility solutions.

In March, the flying car start-up announced its AeroHT Voyager X2 had completed a low-altitude flight in the central business district of Guangzhou.

In April, AeroHT signed a preliminary agreement with the district government of Panyu, another part of Guangzhou, to jointly construct take-off and landing sites for flying cars.

In June, the firm’s flying car took off from Beijing Daxing International Airport for its first flight in the capital city.

A raft of start-ups are developing flying cars, betting on the future of mobility being at least partially airborne.

Lilium, a German company, completed fundraising of US$830 million in a special purpose acquisition company (SPAC) deal on the Nasdaq stock exchange in 2021. American electric air taxi start-up Joby raised US$1.6 billion in another SPAC deal the same year.