Hello, everyone! Today I’d like to delve into a rapidly evolving facet of technology that’s been making quite the buzz in recent times – the Advanced Air Mobility (AAM) sector, and particularly, the rise of electric-vertical-takeoff-and-landing (eVTOL) air taxis. The momentum in this industry has been phenomenal, and it’s clear that China is taking the lead.
There’s been a flurry of investment activity in China’s AAM startups. Just recently, Aerofugia, a subsidiary of the renowned auto manufacturer Geely, raised over 100 million yuan ($14 million) in a Series A funding round. The fund is designated for the continued development of the AE200, a four-passenger eVTOL air taxi. This comes on the heels of a successful flight of a full-scale uncrewed technology demonstrator earlier this year.
Other Chinese startups are also making headlines. TCab Tech recently secured a 100 million yuan pre-Series A funding round to build and fly a full-scale prototype of its E20 eVTOL air taxi. Vertaxi is hot on TCab’s heels, having raised 150 million yuan to develop its Matrix 1 eVTOL prototype. It’s safe to say that the race is on, with both companies expected to take flight in 2024.
Significantly, it’s not just about equity investment. These companies are also securing substantial credit lines. TCab and EHang have both secured billion-yuan credit lines from major state-owned banks. Such financial backing underscores the importance the Chinese government is placing on the development of AAM technology.
What makes the case of Aerofugia unique is its ties to Terrafugia, a U.S. firm known for being a pioneer in the concept of flying cars. After being acquired by Geely, Terrafugia was reborn as Aerofugia, symbolizing China’s determination to evolve and lead in the AAM space.
While startups like AutoFlight, Volant Aerotech, and AeroHT, the subsidiary of electric vehicle maker XPeng, are pushing the envelope, it’s clear the entire industry is shifting gears, and China is at the wheel.
As we see China heavily investing in drones and autonomous aviation, it’s a stark reminder to countries like the U.S., UAE, Europe, Sweden, Germany, Brazil and others, that the time for serious commitment to radical aviation innovation is now. As the future of urban air mobility rapidly approaches, it’s crucial that we keep pace with these developments, or risk being left behind in the wake of a transformative industry.
China’s rise in the eVTOL sector serves as a clear signpost for where the future of transportation is headed. While there’s still a lot to be done in terms of regulation, infrastructure, and public acceptance, one thing is certain: the dragon is soaring, and it’s up to the rest of the world to keep up or be left behind.
Stay tuned for more insights on this exciting industry, and let’s navigate this brave new world of AAM together Disruptive Innovation.
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