EHang’s Strategic Partnership with Hefei Government: Establishing China’s First VT35 Long-Range eVTOL Manufacturing Hub

EHang Holdings Limited, a global leader in urban air mobility (UAM) technology, has embarked on a landmark partnership with the Hefei government to create a dedicated product hub for its VT35 long-range eVTOL (electric vertical takeoff and landing) aircraft. This collaboration, involving a combined investment of approximately RMB 1.5 billion, marks a significant step for China’s ambitions in advanced aerial transportation and positions the country as a frontrunner in the rapidly evolving eVTOL sector. The partnership’s scope, spanning research, manufacturing, certification, and operational integration, offers a holistic blueprint for the commercialization of next-generation air mobility solutions.

As the global urban air mobility market accelerates, driven by urbanization, congestion, and the push for greener transport, strategic alliances like this one between EHang and Hefei are pivotal. They not only catalyze technological innovation but also demonstrate how public-private partnerships can address the multifaceted challenges of regulatory approval, industrial scaling, and ecosystem development. This article explores the background, technology, financial structure, regulatory environment, and broader implications of the EHang-Hefei VT35 initiative, providing a comprehensive analysis grounded in verified data and expert perspectives.

Background: EHang’s Rise and Urban Air Mobility in China

EHang’s journey from a drone manufacturer to a pioneer in autonomous passenger-carrying eVTOL aircraft exemplifies China’s rapid technological advancement. Founded by Huazhi Hu, EHang initially leveraged expertise in emergency control systems, including work on the Beijing 2008 Olympics command infrastructure. The company’s breakthrough came in 2023 when its EH216-S model became the world’s first fully autonomous passenger eVTOL to receive a type certificate from the Civil Aviation Administration of China (CAAC), following extensive laboratory, ground, and flight testing.

This certification process, involving over 500 specific tests and more than 40,000 flight adjustments, set a rigorous industry benchmark. EHang has since conducted commercial trial operations in multiple Chinese cities and expanded to 18 countries, validating its autonomous flight technology and operational model. The company’s financials reflect this momentum: in Q2 2025, EHang reported revenues of RMB147.2 million, a 44.2% year-on-year increase, and delivered 68 EH216 series units with a gross margin of 62.6%.

These achievements underpin EHang’s transition to more ambitious projects like the VT35, designed for longer-range applications and more diverse operational scenarios. The company’s strategic focus on both manufacturing and operational services, supported by robust financial reserves and government partnerships, positions it uniquely within the global UAM landscape.

The VT35 Aircraft: Technical Evolution and Certification

The VT35 represents a leap forward in eVTOL technology, targeting medium- to long-distance transport needs such as intercity, cross-sea, and cross-mountain routes. Building on the VT30 prototype, which demonstrated a 300 km range, 100-minute flight time, and an empty weight of 700 kg, the VT35 introduces proprietary autonomous flight control systems, enhanced propulsion, and a lift-plus-cruise configuration for operational efficiency.

The aircraft features multiple vertical lift propellers and a pusher propeller for cruise, with carbon fiber composite materials ensuring optimal strength-to-weight ratio. Its design aims to overcome the range and payload limitations of earlier eVTOLs, expanding commercial viability for logistics, emergency response, and passenger services. The VT35’s certification process began in February 2025, when the CAAC accepted its type certificate application, and EHang is pursuing further certifications, including production and airworthiness approvals.

These technological advancements are supported by ongoing breakthroughs in battery technology, notably the development of solid-state lithium batteries, which promise improved safety and performance over conventional lithium-ion systems. EHang’s approach, integrating proprietary command-and-control systems and leveraging lessons from the EH216-S, positions the VT35 as a benchmark for next-generation eVTOLs.

“The VT35’s advanced autonomous flight operation and command-and-control system technologies represent proprietary innovations that distinguish EHang’s approach from competitors in the global eVTOL market.”

The Hefei Partnership: Investment, Ecosystem, and Implementation

The EHang-Hefei partnership is structured as a comprehensive public-private initiative, with EHang investing RMB 1 billion and the Hefei government contributing RMB 500 million in support. This support includes direct aircraft orders, supply chain investment, and operational collaboration, creating an integrated ecosystem for VT35 development and commercialization. The partnership’s reach extends across the entire value chain: R&D, testing, manufacturing, certification, supply chain management, sales, operations, and talent development.

Hefei’s established low-altitude economy ecosystem, comprising over 300 companies, provides a fertile environment for the VT35 hub. The city’s demographic strengths, with a high concentration of research talent and an urbanization rate above 85%, support both innovation and operational infrastructure. Hefei’s selection as one of six pilot cities for low-altitude airspace development further enables real-world testing and rapid scaling of UAM solutions.

The collaboration also leverages synergies with the automotive sector, notably through EHang’s joint venture with JAC Motors. This integration of automotive manufacturing expertise is projected to reduce production costs by up to 40%, facilitating mass-market applications and cost-effective scaling. Hefei’s lower cost of living and rental rates, 75% less than Shenzhen, create additional advantages for sustainable industry development.

“EHang’s aggressive expansion in Hefei positions it as a clear leader in China’s eVTOL race, creating a moat against competitors while capturing first-mover demand in logistics and emergency services.”

Regulatory Landscape and Certification Pathway

China’s regulatory environment for UAM is among the world’s most advanced, with the CAAC providing a structured, multi-stage certification process for eVTOL aircraft. The regulatory framework includes type certificates, production certificates, standard airworthiness certificates, and air operator certificates, each addressing specific safety and operational criteria. The successful certification of the EH216-S in 2023 set a precedent for the VT35 and other future models.

The “Interim Regulations on the Management of Unmanned Aircraft Flights,” effective January 2024, establish clear guidelines for UAM operations, including streamlined approval for emergency and government missions. These policies reflect a broader national strategy to accelerate UAM development, supported by coordinated infrastructure investment and airspace management reforms. Hefei’s status as a pilot city for low-altitude operations provides practical advantages for real-world deployment and iterative development.

This regulatory clarity and government backing contrast with the more fragmented environments in North America and Europe, where multiple agencies and decentralized processes can slow innovation. China’s centralized approach enables coordinated progress in certification, infrastructure, and operational integration, providing a model for other markets seeking to accelerate UAM adoption.

Broader Industry Context and Strategic Implications

The global eVTOL market is projected to grow rapidly, with estimates ranging from USD 23 billion to USD 39 billion by the early 2030s. While North America currently leads, Asia-Pacific regions, particularly China, are expected to see significant expansion as regulatory and infrastructure barriers are addressed. EHang’s first-mover advantage in certification and operational experience, combined with its integrated partnership model, positions it to capture substantial market share as demand for urban and intercity air mobility solutions increases.

Competitive dynamics in the eVTOL sector are shaped by varying approaches to funding, manufacturing, and regulatory engagement. Western companies often rely on private investment and face pressure for rapid commercialization, whereas EHang’s partnership with Hefei demonstrates the benefits of government-backed, ecosystem-driven development. The integration of automotive manufacturing processes and supply chains further differentiates EHang’s model, potentially offering cost and scalability advantages over traditional aerospace approaches.

Advancements in battery technology, air traffic management, and integrated operational systems will be critical for the sector’s maturation. EHang’s focus on autonomous operations and proprietary command-and-control infrastructure addresses key challenges in scalability and safety, while its dual business model, combining manufacturing with operational services, creates recurring revenue streams and supports customer adoption.

“The success of the VT35 program will provide crucial data for the entire eVTOL industry regarding the commercial viability of long-range autonomous aircraft and the effectiveness of integrated ecosystem approaches to technology commercialization.”

Conclusion

The EHang-Hefei partnership for the VT35 product hub stands as a milestone in the evolution of advanced air mobility, offering a comprehensive model for technology development, regulatory alignment, and ecosystem integration. By combining substantial private and public investment, leveraging local industrial and talent resources, and adhering to rigorous certification pathways, this initiative sets a new standard for the global eVTOL industry.

Looking ahead, the progress of the VT35 program will be closely watched as an indicator of both the technical and commercial viability of long-range eVTOL solutions. The partnership’s success could catalyze similar collaborations worldwide, shaping the future of urban and intercity air mobility and reinforcing China’s leadership in this transformative sector.

FAQ

What is the VT35 and how does it differ from EHang’s previous models?
The VT35 is EHang’s next-generation long-range eVTOL, designed for medium- to long-distance routes. It builds on the VT30 prototype with enhanced range, autonomous systems, and a lift-plus-cruise configuration, targeting intercity and cross-terrain transport.

What is the financial structure of the EHang-Hefei partnership?
The partnership involves a total investment of RMB 1.5 billion, with EHang contributing RMB 1 billion and the Hefei government providing RMB 500 million in support, including direct orders and supply chain investment.

How does China’s regulatory environment support eVTOL development?
China’s CAAC has established a structured certification pathway for eVTOLs, supported by national policies and pilot city programs. This centralized approach enables coordinated progress in certification, infrastructure, and operations.

Why is Hefei an important location for UAM development?
Hefei offers a robust ecosystem with over 300 low-altitude economy companies, strong research talent, affordable costs, and regulatory privileges as a pilot city for low-altitude airspace. These factors support rapid innovation and scaling.

What are the global implications of the EHang-Hefei VT35 initiative?
The partnership’s integrated approach may serve as a model for other markets, demonstrating the benefits of public-private collaboration, ecosystem development, and regulatory alignment in advancing urban air mobility.

Sources

Aviation Week, EHang Official News, CAAC Official