EHang Holdings Limited (Nasdaq: EH) (“EHang” or “the company”), a global leader in urban air mobility (UAM) technology, has announced a strategic cooperation framework agreement with Anhui Jianghuai Automobile Group Co., Ltd. (“JAC Motors”) and Hefei Guoxian Holdings Co., Ltd. (“Guoxian Holdings”). This partnership will establish a joint venture in Hefei to develop a state-of-the-art manufacturing base dedicated to producing low-altitude aircraft.

The facility will integrate automation, advanced technology, and standardized production processes to scale the manufacturing of intelligent, pilotless electric vertical takeoff and landing (eVTOL) aircraft.

About Guoxian Holdings

Funded by Hefei Chantuo Group and managed by the International Advanced Technology Application Promotion Center (Hefei), Hefei Guoxian Holdings Co., Ltd. plays a key role in promoting national and local initiatives, including overcoming system challenges, introducing centralized SOE resources and fostering new productive forces.

Focusing on technological innovation, industrial aggregation, infrastructure development and talent cultivation, it aims to be a leader in areas such as low-altitude economy, intelligent robotics and next-generation technologies, thereby enhancing the city’s capabilities and industrial competitiveness.

A milestone event for the low-altitude economy

The signing ceremony, marking a key milestone for China’s low-altitude economy, was attended by prominent officials and industry leaders, including Fei Yuan, standing committee member of the Hefei municipal committee and vice mayor of Hefei; Xingchu Xiang, chairman and general manager of JAC Motors; Xingke Yin, vice general manager of JAC Motors; Huazhi Hu, founder, chairman, and CEO of EHang; and Zhao Wang, chief operating officer of EHang.

Their presence underscores Hefei’s commitment to becoming a major hub in the rapidly expanding UAM sector.

Integrating automotive and aviation expertise

Under this agreement, the three partners will collaborate on research and development, manufacturing, and commercialization of eVTOL aircraft to accelerate technological advancements and industrial expansion. By integrating Hefei’s established new energy vehicle supply chain with cutting-edge aviation manufacturing processes, the project aims to standardize key aircraft components, unify industry benchmarks, and create a robust industrial cluster.

JAC Motors, one of China’s top 100 industrial enterprises, will contribute its expertise in automotive manufacturing, leveraging its advanced production lines, automation technology, and supply chain management to scale eVTOL aircraft production.

EHang will provide its proprietary eVTOL technology, extensive experience in airworthiness certification, and operational expertise to ensure compliance with aviation regulations and market readiness. Guoxian Holdings, a key player in industrial innovation in Hefei, will facilitate policy support and infrastructure development, fostering a favorable regulatory and business environment for the partnership.

The joint venture will prioritize automation in production processes, optimize aircraft design, and streamline manufacturing efficiency. This initiative is set to accelerate the widespread adoption of eVTOLs, integrating them seamlessly into urban transportation networks.

Advancing urban air mobility in Hefei

Hefei is actively positioning itself as a leader in China’s low-altitude economy. In October 2023, the Hefei municipal government signed a strategic cooperation agreement with EHang, laying the groundwork for two eVTOL operation centers at Luogang Central Park. These centers will serve as operational hubs for UAM, supporting infrastructure development, personnel training, and the commercial deployment of eVTOL aircraft.

The establishment of the new eVTOL production facility aligns with Hefei’s long-term strategy to meet the growing demand for pilotless passenger aircraft. As the low-altitude economy transitions toward full-scale commercialization, this strategic alliance will play a crucial role in shaping the region’s future transportation landscape.

Government and industry perspectives

Fei Yuan, vice mayor of Hefei, emphasized the city’s strong support for the partnership, highlighting Hefei’s ambition to lead in UAM technology. He noted that Hefei will actively contribute to fostering supply chain capabilities, promoting industry standards, and accelerating technological development. By capitalizing on its first-mover advantage, Hefei aspires to establish itself as a benchmark city for intelligent low-altitude aviation manufacturing.

Xingchu Xiang, chairman and general manager of JAC Motors, underscored the company’s commitment to innovation. He remarked that JAC Motors’ collaboration with EHang and Guoxian Holdings is a strategic move to integrate the automotive and aviation industries. By leveraging Hefei’s advanced industrial resources, the partnership is expected to drive the sustainable development of emerging eVTOL technologies.

Huazhi Hu, founder and CEO of EHang, reiterated the company’s mission to build a fully integrated low-altitude air mobility ecosystem. He emphasized the significance of industry-wide collaboration to enhance the scalability and efficiency of pilotless eVTOL aircraft.

With the combined expertise of JAC Motors and Guoxian Holdings, EHang is confident in its ability to set new industry standards and contribute to the evolution of three-dimensional transportation.

This strategic partnership marks a significant step toward realizing the potential of urban air mobility. By combining automotive production expertise, aviation technology, and industrial policy support, the collaboration is poised to accelerate the global adoption of eVTOL aircraft and redefine the future of transportation.

Source: ehang.com