China has granted the world’s first commercial licences for autonomous flying taxis, marking a significant milestone in the global push for urban air mobility.

As IntelliNews reported, China is rapidly advancing plans to build a “low-altitude economy” where groceries are delivered to your door by drone and workers can avoid the crowds by taking flying taxis home.

It sounds like science fiction, but the flying cars in movies like Blade Runner are here. The Civil Aviation Administration of China (CAAC) has issued permits to two domestic firms—EHang Holdings and Autoflight—to begin commercial operations using autonomous electric vertical take-off and landing aircraft (eVTOLs).

The announcement signals the start of what China has called “a new era in low-altitude economy” with ambitions to lead in a sector still in experimental stages elsewhere. Chinese planners are preparing the groundwork for a business that could generate up to CNY2 trillion ($280bn) in annual output as soon as 2030, Urban Land reports.

Guangzhou-based EHang received a type certificate for its EH216-S model in October 2023, and was awarded its production certificate in April 2024. On December 28, the CAAC granted the company an operational permit, allowing it to provide passenger-carrying flights in designated airspaces.

“This is not only a milestone for EHang but also a significant step for the global eVTOL industry,” said Huazhi Hu, founder and chief executive of EHang, in a statement.

Autoflight, headquartered in Shanghai, also confirmed it had received approval for its V400 Albatross cargo drone, with plans to expand to passenger services under its subsidiary Autoflight X.

China's regulators have moved more swiftly than their counterparts in the US and Europe, where companies such as Joby Aviation, Lilium and Volocopter are still undergoing flight testing and certification. The US Federal Aviation Administration has indicated that commercial operations for passenger-carrying eVTOLs are unlikely before 2028.

The CAAC has been actively promoting what it terms the “low-altitude economy” as part of its broader push to boost advanced manufacturing and next-generation mobility. According to state media, the market for low-altitude transport could reach CNY1tn ($139bn) annually by 2030.

Both EHang and Autoflight plan to roll out pilot services in cities such as Guangzhou and Shenzhen, with additional deployments expected in tourism zones and island transport routes.

“We’re proud to take the lead in commercialising safe, autonomous air mobility solutions,” said Tian Yu, founder of Autoflight.

The CAAC has yet to clarify the regulatory framework for scaling up operations nationwide, but the approval signals China’s intent to be first to market in the rapidly evolving field of autonomous aviation.