EHang CFO says prior certification at home eases regulatory process abroad
TOKYO — China’s EHang Holdings, a global leader in the development of flying cars, considers Southeast Asia’s tourism sector could be a significant market for air mobility systems, according to the company’s senior executive.
Unlike helicopters, flying cars — or eVTOLs (electric vertical takeoff and landing) — can be fully electric or hybrid, making them quiet and able to lift off and land in tiny spaces.
Expected to be a new mode of transportation, Morgan Stanley has forecast that the global market for flying cars will reach nearly $1.5 trillion by 2040. Major developers in the nascent field include Volocopter of Germany and Joby Aviation of the U.S.
EHang has been testing its vehicles in preparation for regulatory approval. The company’s exchange filings show preorders of over 1,200 units as of September 2022, signaling the possible existence of customers in the medical and tourism sectors.
Last month, EHang succeeded in carrying passengers on a demo flight of its two-seater EH216-S in the Japanese city of Oita, where a group was transported pilot-free about 400 meters at an altitude of 30 meters.
The flight was EHang’s “first passenger-carrying demo flight in an open airspace outside China,” chief financial officer Richard Liu told Nikkei Asia during a February interview in Tokyo, adding that EHang will conduct more test flights in Japan.
EHang Holdings CFO Richard Liu: “After we obtain certification in China, it could provide a base for us to apply for certification with local authorities.” (Photo by Sayumi Take)
Beyond China and Japan, Liu said Southeast Asian countries would be key markets, as the company expects use of eVTOL sightseeing tours in popular travel destinations.
“There is a very concrete, sizable market need [for aerial sightseeing]. In addition to China and Japan, we are looking at countries where tourism is an important industry, such as Thailand, Indonesia and Malaysia,” adding that EHang has developed local partners in these markets for test flights and handling local regulatory matters.
“For example, together with our Indonesian partners, last year we conducted a demo flight over Bali island,” he said.
In Southeast Asia, flying car rival Volocopter last year announced it would launch tourist flights in Singapore over Marina Bay and Sentosa, the city-state’s most popular tourist areas.
Liu said passenger fees for electric aerial tours would be lower than those charged for conventional helicopter tours.
“For traditional helicopters, to maintain safety or safe operation, very frequent daily maintenance is required. In addition, for a traditional helicopter to operate, there has to be a pilot onboard,” he said. “But EH216-S is an autonomous [vehicle] so the pilot cost can be saved. And because it’s electric, maintenance [costs] are much less than traditional helicopters.”
Liu said the company has been working with Chinese aviation authorities and expects to obtain a “type certification” for the flagship EH216-S soon. “It is in the final stage,” he said. “After obtaining type certification, we can sell and use the EH216-S commercially in China.”
He noted that having the certification in China could lay the basis for getting approval in other markets, including Southeast Asia.
“For the countries I mentioned, aviation authorities are open-minded. So after we obtain certification in China, it could provide a base for us to apply for certification with local authorities,” he said. “We will not have to go from zero. It will shorten the time and be more efficient for us to establish a market presence in these countries.”
Listed on Nasdaq in December 2019, EHang is one of only a few publicly traded companies in the flying car sector. “It helps us increase our international brand image,” he said, “And of course, the regular benefit [of being listed] would be opening up channels for additional capital.”
Source: asia.nikkei
