Hong Kong is embarking on a 'step-by-step' approach to testing drone and flying car operations, as announced by Transport Minister Lam Sai-hung. This initiative is part of a broader effort to tap into the burgeoning low-altitude economy, which is projected to reach between 3 to 5 trillion yuan (approximately US$425 billion) by 2025. Experts have emphasized the importance of cross-departmental and cross-border discussions to effectively navigate the complexities of this multi-trillion yuan industry [6da75cfd].
The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) has proposed the formation of a cross-department panel to facilitate regulation and communication with mainland China. This collaboration is seen as crucial for the successful integration of drone and flying car operations within the region's transport ecosystem [6da75cfd].
In terms of logistics, travel time from Shenzhen to Hong Kong International Airport via electric vertical take-off and landing (eVTOL) aircraft is estimated at just 20 minutes, significantly shorter than the 50 minutes required by car. This efficiency highlights the potential benefits of adopting low-altitude transport solutions in the Greater Bay Area [6da75cfd].
However, experts have raised concerns regarding the technological and regulatory challenges that lie ahead. The need for comprehensive safety regulations and operational standards is paramount as Hong Kong seeks to establish itself as a leader in the low-altitude economy. In 2022, Hong Kong produced 75 billion yuan worth of drone products, accounting for 70% of China's total production, underscoring the region's significant role in the drone industry [6da75cfd].
Meanwhile, Shenzhen continues to expand its low-altitude economy with the launch of a helicopter service from its high-speed railway station, operated by Shenzhen Eastern General Aviation Company. This service, which connects travelers to Shenzhen Bao'an International Airport in about 8 minutes, is priced at 1,999 yuan (approximately $310) for a one-way ticket. The initiative aims to attract business travelers and tourists, reflecting Shenzhen's commitment to innovative transportation solutions [11817ce5].
Shenzhen is also investing in the eVTOL sector, offering subsidies to firms involved in manufacturing and research. The local government has signed an agreement with eVTOL developer Lilium to establish a regional headquarters in the city, further solidifying its position in the low-altitude economy [59fce45d].
In addition, EHang Holdings Limited has partnered with China Southern Airlines General Aviation Company to explore innovative solutions for the low-altitude economy, including the development of pilotless eVTOL aircraft for various applications such as tourism and emergency response [13eef159].
China has witnessed a remarkable 48% surge in newly-registered unmanned aerial vehicles (UAVs) in the first half of the year, totaling over 1.87 million. The Civil Aviation Administration of China (CAAC) is working to upgrade the traditional aviation industry alongside the burgeoning UAV sector, aiming to enhance logistics and transport networks across the country [f4a4b5ea].
Xpeng's flying car affiliate AeroHT is also making strides in this space, planning to price its first flying car at around US$200,000 with delivery expected by the end of next year. The low-altitude economy in China, which encompasses businesses operating aerial vehicles below 3,000 meters, is projected to grow significantly, with the market expected to reach 2 trillion yuan by 2030 [6ab57a23].