China accelerates production of drones for low-altitude economy, but is the sector directionless?

A Chinese drone manufacturer is gearing up to mass-produce a compact, six-ton aircraft designed for the burgeoning “low-altitude economy,” a sector projected to grow significantly by 2030 with the rise of aerial taxis and drone deliveries.

United Aircraft, a Shenzhen-based firm, announced on November 13 that it has secured 1 billion yuan ($138 million) in orders for its Lanying R6000, a tilt-rotor aircraft capable of vertical take-offs and landings from spaces as small as rooftops, according to South China Morning Post.

The R6000, which resembles a small plane, can reach speeds of up to 550 kilometers per hour (342 mph) and travel distances of up to 4,000 kilometers (2,485 miles), the company said.

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Production of the aircraft is set to begin early next year in Chengdu, the southwestern hub, according to Hongxing News. The deals reportedly involve 10 buyers from various countries.

China has long relied on imports for aircraft and components, sourcing from partners like Russia and the United States.

However, Beijing has prioritised domestic development to capitalise on its emerging low-altitude economy— a sector encompassing manned and unmanned operations at altitudes below 1,000 meters (3,280 feet).

Valued at 500 billion yuan, the low-altitude economy has attracted significant investment. By the end of 2023, China registered 1.27 million drones, a 32.2 per cent increase from the previous year, according to the Civil Aviation Administration of China.

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Is the low-altitude economy directionless?

Despite the optimism, questions remain about whether the sector’s infrastructure and workforce can sustain such rapid growth.

“There is no mature business model for the low-altitude economy to learn from abroad,” said Luo Jun, executive director of the China Low Altitude Economic Alliance, in a statement earlier this year. “Many companies are both enthusiastic and confused.”

Industry analysts have highlighted gaps in skilled labour and logistical infrastructure. A July report by state news agency Xinhua estimated the sector would require about 1 million additional workers to meet future demands.

While China presses ahead with innovation and production, the path to building a fully functional low-altitude economy remains fraught with uncertainty.

With inputs from agencies