Amid rising competition, Chinese carmakers are tapping EV supply chains to branch into futuristic tech.
SHANGHAI — It looks like a machine built for multiple worlds. A sleek capsule locks into a wheeled base, forming a sports car. Attach a winged frame, and that same capsule is designed to lift off as an aircraft. Called Tiannian 1, literally “sky carriage,” the modular system was developed by Hongqi, a Chinese luxury brand better known for building official state limousines.
For now, it remains a concept, untested in the air, with no production timeline or regulatory approval in place. But at this week’s Shanghai Auto Show, it was among a growing number of futuristic machines on display, as automakers look beyond cars to signal where they’re headed next amid intensifying domestic competition.
Now in its 40th year, the show runs from April 23 to May 2 and has drawn nearly 1,000 automakers and supply chain companies from 26 countries and regions.
Across the exhibition halls this year, displays of flying vehicles, robots, and other non-car prototypes attracted some of the largest crowds. Visitors circled prototypes, peppering staff with questions about range, pricing, and when the machines might actually take off.
The “Land Aircraft Carrier,” a flying car developed by Chinese electric vehicle maker XPeng, on display at the Shanghai Auto Show, April 28, 2025. Li Xin/Sixth Tone
At top EV maker XPeng’s booth, where guests could step inside a full-scale cabin, lines formed early and barely let up. The company showcased its latest model: a six-wheeled minivan designed to carry a foldable aircraft in the back. Priced at under 2 million yuan ($270,000), the vehicle is open for pre-sale and slated for mass production by the end of the year.
Elsewhere, state-owned automaker Changan showcased a full lineup that included cars, aircraft, and a full suite of robotics: a humanoid robot, robotic dog, wheeled bot, and powered exoskeleton.
Changan says it will invest 100 billion yuan ($13.7 billion) over the next decade to develop advanced systems, including triphibian vehicles and humanoid robots. A spokesperson told Sixth Tone the shift is “of strategic importance” to its transformation into a technology-driven business.
A flying car designed by Changan at the Shanghai Auto Expo, April 26, 2025. VCG
A humanoid robot and a robot dog designed by Changan at the Shanghai Auto Show, April 28, 2025. Li Xin/Sixth Tone
With several other major automakers — among them Chery, Geely, and Nio — also moving in this direction, industry experts say the shift is driven less by pure innovation than by a push to repurpose existing expertise and supply chains.
Companies often start with one product line, then expand into adjacent technologies that tap similar components, talent, or infrastructure, according to Zhang Xiang, secretary-general of the International Intelligent Vehicle Engineering Association.
This strategy helps companies reach more customers and expand into new markets. Tesla, for instance, started with electric cars but now spans robots, energy storage, solar power, and autonomous driving. By building a connected ecosystem, firms aim to keep users within their brand, encouraging them to adopt multiple products that work together.
Rising competition has made this strategy more urgent. As the market consolidates, automakers are under pressure to find new growth areas. Last year, several Chinese EV startups, including WM Motor and HiPhi, shut down.
Above: A flying car concept by the Chinese carmaker Chery on display; below: A GAC Group Trumpchi flying car on display at the Shanghai Auto Expo, April 23, 2025. Lü Xiao/Sixth Tone
“Product diversification helps companies manage risk,” Zhang told Sixth Tone. “With competition being so intense, relying on a single sector is no longer enough.”
Of all the emerging sectors, low-altitude aircraft — especially electric vertical takeoff and landing vehicles, or eVTOLs — are drawing the most attention. Backed by growing government support, the space is beginning to mirror the early days of China’s EV boom, which over the past decade grew into a trillion-yuan market.
Since last year, central authorities have been promoting the “low-altitude economy,” which focuses on commercial flights below 1,000 meters and is being positioned as a new engine of national growth.
The low-altitude sector is expected to reach 1.5 trillion yuan this year and more than double by 2035, according to China’s civil aviation authority. Within that, Morgan Stanley projects the eVTOL segment could account for more than 30% of the global market by 2035.
In China, eVTOLs are often referred to as “flying cars” because they share a high percentage of components and technologies. Guo Liang, CEO of Geely-backed Aerofugia, estimates that as much as 70% to 80% of the components and technologies — batteries, motors, and control systems — can be shared between the two.
That common ground makes automakers well-positioned to enter the space. “Beyond the technical challenges, car companies already have the capital, talent, and supply chains needed to scale production,” Zhang Jingqi, a designer at Hongqi’s aircraft arm, told Sixth Tone.
Still, most of these cross-industry efforts remain in early stages. The aircraft on display are largely prototypes, and only a few have completed pilot flights.
Like the smartphone market before the iPhone, the electric aircraft sector has yet to converge on a standard design, let alone a clear commercial path. “There are currently 20 to 30 different eVTOL models,” said Zhang. “Some use single rotors, others multiple, and some combine rotors with glider wings.”
That variety may signal innovation, but also uncertainty. Zhang cautioned that most of these machines are still years away from widespread use.
“For now, they’re mostly concepts, deployed as marketing tools to attract attention, drive car sales, or reassure investors,” he said.
Editor: Apurva.
(Header image: An air taxi made by Chinese luxury carmaker Hongqi on display at the Shanghai International Automobile Industry Exhibition, April 23, 2025. VCG)