International News

Autonomous passenger drones take flight – what does it mean for the tyre industry?

Updated
Apr 3, 2025 8:55 PM
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Image: ehang.com

China has become the first country in the world to approve the commercial operation of autonomous passenger drones, with two companies – EHang Holdings and Hefei Hey Airlines – receiving certification to operate unmanned aerial vehicles for paying passengers. While the move is a milestone for urban air mobility, it also prompts questions about the longer-term implications for the tyre industry.

The Civil Aviation Administration of China (CAAC) issued commercial operation certificates to both companies on 29 March 2025. This approval allows them to offer paid passenger services using autonomous, pilotless drones in designated areas such as Guangzhou and Hefei.

At the heart of this development is EHang's EH216-S, a two-seater electric vertical take-off and landing (eVTOL) vehicle. Designed for urban air mobility, the aircraft uses a solid-state battery and has been in development since 2018. It is aimed at providing short-distance flights for sightseeing, airport connections, and cross-island transport.

While the technology represents a leap forward in mobility innovation, it could also be seen as a signal of future competition for ground-based transport modes, including private vehicles, taxis, and even last-mile delivery fleets — sectors that currently drive global tyre demand.

Image: ehang.com

A wider shift in urban mobility

China’s move is part of a broader strategy to grow what it calls its "low-altitude economy," an industry projected to reach £165 billion (1.5 trillion yuan) by the end of 2025, expanding to £275 billion (2.5 trillion yuan) by 2035.

This raises questions for tyre industry stakeholders:

  • Will the rise of aerial mobility reduce reliance on ground-based transport in congested urban areas?
  • Could drone taxi services impact demand for vehicle fleets, taxis, and public transport, indirectly affecting tyre sales?
  • How might tyre manufacturers adapt their business strategies if urban transport patterns shift over the next decade?

No immediate threat, but long-term watchlist

For now, the practical impact on tyre markets is minimal. The EH216-S and similar aircraft will likely remain niche services limited to specific cities and use cases.

However, the launch of commercial air taxis is part of a wider trend toward diversified urban mobility options, which may alter how people move around cities in the future. Tyre manufacturers and mobility providers may need to monitor how these developments could change tyre usage patterns over time.

Image: ehang.com

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