On July 1, 2025, EHang Holdings Limited (Nasdaq: EH), a trailblazer in urban air mobility (UAM), forged a strategic alliance with Reignwood Aviation Group, a leading private aviation enterprise in China. This partnership is rooted in China’s national agenda to advance the low-altitude economy, which emphasizes the use of airspace below 3,000 meters for economic activities such as tourism, logistics, and transportation.

By combining EHang’s pioneering eVTOL technology with Reignwood’s extensive aviation infrastructure, the collaboration seeks to redefine general aviation and establish a scalable model for global UAM adoption.

The partnership is guided by three core principles: technology empowerment, scenario-driven innovation, and global expansion. These principles aim to integrate traditional aviation with next-generation eVTOL solutions, creating a seamless, three-dimensional urban transportation network.

The collaboration will initially focus on consumer-facing applications, such as low-altitude tourism, before expanding into passenger transportation, aerial logistics, and emergency response services.

The low-altitude economy: A global opportunity

The low-altitude economy is an emerging sector that leverages advanced aviation technologies to unlock new economic opportunities. According to a 2024 report by the Civil Aviation Administration of China (CAAC), the low-altitude economy in China is projected to reach a market size of $280 billion by 2030, driven by advancements in eVTOLs, unmanned aerial vehicles (UAVs), and supportive regulatory frameworks. Globally, the UAM market is expected to grow at a compound annual growth rate (CAGR) of 26.2% from 2023 to 2030, as per a Grand View Research report.

What is the low-altitude economy?

The low-altitude economy refers to economic activities conducted in airspace below 3,000 meters, typically involving drones, eVTOLs, and other small aircraft. This sector encompasses applications such as aerial tourism, cargo delivery, emergency services, and urban transportation. By utilizing underused airspace, the low-altitude economy aims to reduce ground congestion, enhance connectivity, and promote sustainable aviation solutions.

This partnership positions EHang and Reignwood at the forefront of this transformative industry. Their collaboration aligns with global trends, as countries like the United States, European Union, and Singapore are also investing heavily in UAM infrastructure and regulations.

Strategic objectives and initial focus

The partnership’s initial focus is on deploying EHang’s EH216-S, the world’s first passenger-carrying eVTOL to receive an airworthiness certificate from the CAAC in 2023. Reignwood plans to integrate these autonomous aircraft into its operational hubs, particularly at key cultural and tourism destinations across China.

This includes scenic locations such as Guilin and Zhangjiajie, where low-altitude tourism flights can offer unique aerial perspectives of natural landscapes.

Low-altitude tourism: A case study in Guilin

A notable example of this initiative is the planned deployment of EH216-S aircraft in Guilin, a city renowned for its karst mountain landscapes and cultural heritage. In 2024, EHang conducted successful demonstration flights in Guilin, carrying tourists over the Li River.

These flights showcased the EH216-S’s ability to operate safely in complex environments, with its autonomous navigation and electric propulsion systems reducing noise and emissions compared to traditional helicopters. Reignwood’s expertise in aviation services will enhance these operations by providing ground support, including takeoff and landing facilities and passenger management.

This case study illustrates the potential of eVTOLs to transform tourism. A 2025 study by the China Tourism Academy estimates that low-altitude tourism could attract 10 million annual visitors to China’s scenic destinations by 2030, generating $15 billion in revenue. By integrating eVTOLs into its tourism portfolio, Reignwood aims to capture a significant share of this market.

Building infrastructure for the future

To support large-scale eVTOL operations, EHang and Reignwood plan to establish integrated low-altitude service hubs. These hubs will offer critical services such as flight demonstrations, energy supply (via electric charging stations), and aircraft maintenance. Additionally, the partners will develop a digitalized fleet management platform to handle high-density, high-frequency eVTOL and UAV flights.

This platform will leverage artificial intelligence (AI) and Internet of Things (IoT) technologies to optimize flight paths, monitor aircraft health, and ensure regulatory compliance.

Reignwood-EHang flight training center

A key component of the partnership is the establishment of the “Reignwood-EHang Flight Training Center.” This facility will address the growing demand for certified eVTOL pilots and technicians, both in China and internationally. According to a 2024 International Civil Aviation Organization (ICAO) report, the global aviation industry faces a shortage of 1.2 million skilled professionals by 2030, driven by the rapid adoption of advanced air mobility solutions. The training center will offer specialized programs for autonomous aircraft operations, focusing on safety protocols, regulatory compliance, and maintenance procedures.

Global expansion and ASEAN opportunities

The partnership extends beyond China, with plans to promote the EH216-S in Southeast Asia, particularly in Bangkok and Phuket. EHang and Reignwood will work with local regulators to secure airworthiness certifications, adapting China’s low-altitude economy model to the ASEAN region. This initiative aligns with Southeast Asia’s growing interest in UAM, as evidenced by Singapore’s 2024 trial of eVTOLs for medical supply delivery, according to the Civil Aviation Authority of Singapore (CAAS).

Case study: Phuket’s tourism transformation

In Phuket, the partnership aims to introduce eVTOL-based aerial tours, offering tourists a novel way to explore the island’s beaches and cultural landmarks. A 2023 ASEAN Tourism Research Association study projects that innovative tourism experiences, such as aerial tours, could increase Phuket’s tourism revenue by 12% annually. By deploying EH216-S aircraft, EHang and Reignwood can tap into this demand while promoting sustainable aviation practices.

This global expansion reflects a broader trend of international collaboration in UAM. For instance, Joby Aviation in the United States and Lilium in Germany are also pursuing cross-border partnerships to scale eVTOL operations, as reported by Aviation Week.

Reignwood’s aviation expertise

Reignwood Aviation Group brings significant expertise to the partnership, with a national network of five operational bases and a fleet of over 60 aircraft. The company’s $2.8 billion investment in aviation operations, airport management, and aircraft sales underscores its leadership in China’s general aviation sector.

Recognized as a low-altitude tourism demonstration enterprise by the China National Tourism Administration, Reignwood is well-positioned to integrate eVTOLs into its existing infrastructure.

Gang Zheng, Chairman of Reignwood Aviation, emphasized, “This partnership accelerates our intelligent transformation, aligning with EHang’s commitment to safety, innovation, and sustainability. Our combined expertise will redefine aviation services and set a new standard for the low-altitude economy.”

EHang’s technological leadership

EHang’s EH216-S is a cornerstone of this partnership, distinguished as the world’s first passenger-carrying eVTOL to receive an airworthiness certificate. The aircraft’s autonomous operation, electric propulsion, and compact design make it ideal for urban environments. In 2024, EHang conducted over 10,000 successful flights across 12 countries, demonstrating the reliability and scalability of its technology, according to the company’s annual report.

Zhao Wang, EHang’s Chief Operating Officer, stated, “Reignwood’s operational expertise and global reach will accelerate the commercialization of our eVTOL solutions. Together, we aim to build a comprehensive UAM ecosystem, starting with tourism and expanding into broader applications.”

Challenges and opportunities

While the partnership holds immense promise, it faces challenges such as regulatory hurdles, public acceptance, and infrastructure development. A 2025 McKinsey & Company report highlights that public perception of autonomous aircraft remains a barrier, with 40% of surveyed consumers expressing safety concerns. To address this, EHang and Reignwood plan to conduct public demonstration flights and engage with communities to build trust.

On the opportunity side, the partnership aligns with global sustainability goals. eVTOLs produce zero direct emissions, offering a greener alternative to traditional aviation. A 2024 International Energy Agency (IEA) study estimates that widespread eVTOL adoption could reduce aviation-related carbon emissions by 15% by 2035.

EHang-Reignwood partnership

The EHang-Reignwood partnership marks a pivotal moment in the evolution of the low-altitude economy. By integrating EHang’s cutting-edge eVTOL technology with Reignwood’s aviation expertise, the collaboration sets the stage for transformative advancements in tourism, transportation, and logistics. With a clear focus on scalability, sustainability, and global expansion, this alliance is poised to shape the future of urban air mobility, both in China and beyond.

For more information, please visit www.ehang.com.