China has approved the country’s first-ever autonomous passenger drones, or “flying taxis”, for commercial use.
The Civil Aviation Administration of China (CAAC) has approved air operator certificates for the first-ever autonomous flying taxis, the South China Morning Post (SCMP) reported. This certification clears the Nasdaq-listed EHang Holdings and Hefei Hey Airlines to operate unmanned aerial vehicles for commercial passenger services, including urban sightseeing tours.
China has officially entered the era of “flying taxis”.
2 Chinese companies have obtained the commercial operation certificate for autonomous passenger drones from CAAC.
— Tansu Yegen (@TansuYegen) March 31, 2025
The approval marks the final regulatory milestone after both companies secured their type certificate, production certificate, and airworthiness certificate, according to a report by Citic Securities.
“We reckon that low-altitude tourism will be the beginning of this new business,” the report said. “EHang’s urban sightseeing tours can accelerate the development of the industry.”
Beijing is pushing with the low-altitude economy, including innovations such as delivery drones, blimps, and flying cars. The Chinese government sees this sector as a key driver of economic growth, alongside emerging technologies like biomanufacturing, quantum computing, AI, and 6G networks.
“The low-altitude economy is a new growth driver, and it will be an important engine to push the high-speed development of China’s economy,” said Cheng Bolin, vice president of the low-altitude unit at the China Information Association.
The EHang EH216-S: China’s First Mass-Produced Flying Taxi
In April 2024, EHang became the first company in the world to receive a production certificate to mass-manufacture autonomous electric vertical takeoff and landing (eVTOL) vehicles in China, as per LiveScience.
The EH216-S, announced in 2018, is a fully electric, pilotless two-seater with 16 propellers and a carbon fibre fuselage. It has a cruise speed of 100 kmph and can reach a maximum altitude of 10,000 feet (3,000 metres).
The EH216-S operates autonomously, removing the need for a pilot. EHang plans to use it for air taxi services, aerial tourism, airport shuttles, and cross-island transport.
According to research group Hurun, China’s low-altitude economy is projected to be worth 1.5 trillion yuan by 2025, with estimates suggesting it could expand to 2.5 trillion yuan by 2035.
China’s flying taxi industry is heating up, with domestic startups like EHang and Feihang Aviation competing against traditional automakers such as Xpeng and Geely. Global aviation giants such as Boeing, Airbus, and Embraer are also eyeing the market.
“Looking ahead, as policies supporting the low-altitude economy continue to roll out, the competition in this sector is set to intensify,” Hurun said in its report.