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New Partnership for the Skies: EHang and Changan Automobile Join Forces to Build Flying Cars
EHang and Changan Automobile sign a strategic agreement to develop flying cars, enhancing urban air mobility and low-altitude economy initiatives.
Overview of the Strategic Partnership
EHang Holdings Limited has formed a strategic cooperation agreement with Chongqing Changan Automobile Co., Ltd. This collaboration aims to advance the development of flying cars and electric vertical takeoff and landing (eVTOL) aircraft. Supported by the Chongqing Municipal Government, both firms wish to utilize EHang’s aerial vehicle expertise alongside Changan’s robust manufacturing skills to create a venture focusing on innovative mobility technologies. This partnership is set to expand EHang’s eVTOL product line and tap into the burgeoning low-altitude economy, anticipated to grow significantly in China. The agreement also includes joint initiatives in research, production, marketing, and enhancing user experience, with both companies poised to invest heavily in this sector over the coming decade. It aligns with national strategies to promote technological innovation and commercial flying car solutions, aimed at providing efficient and eco-friendly transportation options.
Potential Benefits
- By partnering with Changan Automobile, a significant player in the automotive sector, EHang enhances its position in the urban air mobility market.
- The focus on developing flying cars and eVTOL aircraft may accelerate the commercialization efforts in the rapidly expanding low-altitude economy.
- This collaboration benefits from progressive government policies in China, indicating strong potential for market growth, with projections estimating a reach of 3.5 trillion yuan by 2035.
- Changan’s ambition to invest over 100 billion yuan in the low-altitude economy over the next decade reflects a robust commitment to advancing the flying car industry, which bodes well for EHang’s aspirations.
Potential Concerns
- The press release did not include specific timelines or financial commitments from EHang, potentially raising doubts about its long-term viability and ability to realize the ambitious goals of this partnership.
- Relying heavily on collaboration with Changan may suggest that EHang lacks sufficient resources or infrastructure to independently pursue its flying car technology, potentially undermining investor confidence.
- The mention of forward-looking statements carries inherent risks and uncertainties, implying that EHang’s future performance could be unpredictable and significantly different from expectations, a point of concern for stakeholders.
Frequently Asked Questions
What is the strategic partnership between EHang and Changan Automobile?
EHang and Changan Automobile have signed an agreement to develop and manufacture technologies for flying cars and eVTOL aircraft.
What are eVTOL aircraft?
eVTOL stands for electric vertical takeoff and landing aircraft, which are designed for urban air mobility and passenger transport.
How will this partnership impact the low-altitude economy?
The collaboration is aimed at speeding up the commercialization of flying cars, which will foster the development of China’s low-altitude economy.
What investments will Changan Automobile make in this sector?
Changan plans to invest over 20 billion yuan into the low-altitude economy sector within the next five years.
What is EHang’s role in urban air mobility?
EHang leads in Urban Air Mobility technology, focusing on safe, autonomous, and environmentally friendly aerial transit solutions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
Institutional Interest in $EH
In recent quarters, 32 institutional investors have purchased shares of $EH stock, while 40 have reduced their holdings.
Here are some of the notable recent changes:
To follow the stock portfolios of hedge funds, visit Quiver Quantitative’s institutional holdings dashboard.
Full Release
GUANGZHOU, China, Dec. 21, 2024 (GLOBE NEWSWIRE) — EHang Holdings Limited (Nasdaq: EH) (“EHang” or the “Company”), the world’s leading Urban Air Mobility (“UAM”) technology platform company, today announced the signing of a strategic cooperation agreement with Chongqing Changan Automobile Co., Ltd., (“Changan Automobile”), a leading Chinese car manufacturer listed on the Shenzhen Stock Exchange (ticker symbol: 000625), in the presence of the Chongqing Municipal Government and representatives from various industry sectors. The parties intend to collaborate on the research and development, manufacturing, sales, and operation of flying car-related products, including electric vertical takeoff and landing (“eVTOL”) aircraft and innovative flying cars. This partnership will leverage EHang’s strong product development capabilities in aerial vehicles and low-altitude flight management technology solutions while combining Changan’s solid production foundation and extensive market resources in the automotive sector. Together, they will explore the creation of a joint venture focused on future mobility ecosystem technologies, further enriching EHang’s eVTOL product offerings and unlocking a significant potential market targeting a broader customer base.
Zhao Wang, Chief Operating Officer of EHang and Xiaoyu Zhang, Executive Vice President of Changan Automobile, sign a strategic cooperation agreement.
The signing ceremony took place at the proposed site of the Changan Global Science and Art Center in Chongqing. Distinguished attendees included Henghua Hu, Deputy Secretary of the Chongqing Municipal Committee and Mayor of Chongqing, Xiangdong Zheng, Vice Mayor of Chongqing, and management from Changan Automobile including Huarong Zhu, Chairman; Jun Wang, President; and Benhong Tan, Chief Human Resources Officer. EHang’s leadership was also present, including Huazhi Hu, Founder, Chairman, and CEO; Zhao Wang, Chief Operating Officer; and Conor Yang, Chief Financial Officer. Highlights of the ceremony featured a flight demonstration of the EH216-S pilotless passenger-carrying eVTOL aircraft.
The EH216-S pilotless eVTOL performs a flight demonstration at the signing ceremony, with the EH216-F and EH216-L pilotless eVTOLs on display.
Changan Automobile, one of China’s top four automotive groups, possesses significant strengths in R&D, manufacturing infrastructure, supply chain, sales channels, and market influence. As a pioneer in the global UAM sector, EHang is at the forefront of R&D, design, mass production, and safe operation for pilotless passenger-carrying eVTOL aircraft. Under this agreement, both partners will combine their resources to co-develop flying cars, focusing on advanced technologies, innovative design, and market competitiveness. Their collaboration encompasses research and development, production, marketing, channel development, user experience, and after-sales services, integrating low-altitude economy applications to expedite the commercialization of flying cars and EHang’s pilotless eVTOL products.
The signing ceremony of the strategic cooperation agreement
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Changan Automobile and EHang Join Forces to Propel Low-Altitude Mobility
Strategic Move in a Growing Industry
The low-altitude economy has become a key focus for China’s economic growth, recognized as a strategic emerging industry. The 2024 Central Economic Work Conference highlighted the need for innovative technologies and large-scale demonstrations for new applications. Recently, Chinese authorities have encouraged research into flying car technologies and their commercial viability. The push is aimed at developing unmanned, electric, and intelligent low-altitude vehicles. According to the Civil Aviation Administration of China, the low-altitude economy exceeded 500 billion yuan in 2023 and is expected to grow to 2 trillion yuan by 2030, potentially reaching 3.5 trillion yuan by 2035.
Chongqing’s Vision for Innovation
In September 2023, the Chongqing Municipal Government announced the Action Plan for Promoting Low-Altitude Airspace Management Reform and High-Quality Development of the Low-Altitude Economy (2024–2027). This initiative aims to establish Chongqing as a leading city in low-altitude innovation, encouraging smart automobile companies like EHang and Changan Automobile to explore R&D and production of eVTOLs. Their collaboration aligns with government strategies to integrate automotive technology and low-altitude mobility, particularly in Chongqing’s challenging mountainous terrain, promising a more efficient and eco-friendly transportation option.
Huarong Zhu, Chairman of Changan Automobile, during the collaboration signing ceremony
Huarong Zhu emphasized the significance of the partnership, stating, “The cooperation between Changan Automobile and EHang in the development of flying cars is essential. Each partner will leverage its strengths. Over the next five years, Changan will invest over 20 billion yuan in the low-altitude sector, aiming for an investment exceeding 100 billion yuan within the next decade to explore integrated mobility solutions across all transportation methods.”
Huazhi Hu, Founder, Chairman, and CEO of EHang, at the signing ceremony
Huazhi Hu expressed EHang’s commitment to enhancing the eVTOL ecosystem by collaborating with various partners. He said, “This partnership will further the R&D, manufacturing, sales, and operation of next-generation flying cars, enhancing the low-altitude economy and increasing travel options for consumers.”
About EHang
EHang (Nasdaq: EH) is a leader in urban air mobility technology, committed to safe and eco-friendly air transportation. The company offers unmanned aerial vehicle systems for diverse applications such as passenger transport and logistics. Its flagship model, the EH216-S, is the first pilotless eVTOL to receive necessary certifications in China. EHang continues to push the boundaries of aerial technology for smart cities. More information is available at
www.ehang.com
.
About Changan Automobile
Changan Automobile is a major player among Chinese car manufacturers, boasting 40 years of experience and a global footprint of 14 manufacturing bases and 34 plants. It produces several brands, including CHANGAN UNI and CHANGAN Ford, with over 18,000 engineers and a robust R&D network spanning multiple countries.
Safe Harbor Statement
This release contains forward-looking statements as defined by U.S. law, identifiable by terms such as “will,” “aims,” and “plans.” These statements are subject to risks and uncertainties that may cause actual results to differ, including market acceptance of products and partnerships. Management’s expectations are formed on current assumptions and may prove inaccurate due to unforeseen factors.
Investor Contact:
ir@ehang.com
Media Contact:
pr@ehang.com
Photos related to this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/e078a45c-d232-4360-9ccd-f2c624229d3f
https://www.globenewswire.com/NewsRoom/AttachmentNg/7d1d7cca-a3c7-42da-bbd5-aee441cb9eb3
https://www.globenewswire.com/NewsRoom/AttachmentNg/8087df72-cd5f-4df3-8772-51fe658cf54f
https://www.globenewswire.com/NewsRoom/AttachmentNg/32fcc1ba-ca7c-4c2b-9ffd-c491d718d62e
https://www.globenewswire.com/NewsRoom/AttachmentNg/8c31ca29-bc7e-48d9-bdbb-283d17141c43
https://www.globenewswire.com/NewsRoom/AttachmentNg/9d5bed0b-bb04-4526-acfb-0c09989d1a6c
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