EHang Sees Revenues Take Off As eVTOL Production Ramps Up
The advanced air mobility market is off and running—in China at least. Startup EHang made its first adjusted net profit in the second quarter as production and revenues soared ninefold year over year.
The advanced air mobility market is off and running—in China at least. Startup EHang made its first adjusted net profit in the second quarter as production and revenues soared ninefold year over year.
Guangzhou-based EHang reported revenues of 102 million yuan ($14.3 million) for the second quarter on deliveries of 49 EH216-S autonomous two-passenger electric vertical-takeoff-and-landing (eVTOL) air taxis. This compares with 26 units in the first quarter and five units in the second quarter of 2023. Revenues in the third quarter are projected to reach 123 million yuan.
EHang has received preorders for more than 1,100 aircraft in the Chinese market and its Yunfu factory has begun ramping up output after securing production certification in April from the Civil Aviation Administration of China (CAAC), founder, Chairman and CEO Huazhi Hu told analysts Aug. 22.
The startup is planning a production expansion and signed a memorandum of understanding in June with carmaker Guangzhou Automobile Group (GAC) to establish a joint venture. The planned venture will leverage GAC’s experience with automated production lines for electric vehicles to produce pilotless, passenger-carrying eVTOLs in Guangzhou, Hu said.
The existing Yunfu factory is being expanded and EHang is establishing a second manufacturing base in Hefei, Anhui province, to serve East China, Chief Operating Officer Zhao Wang told analysts.
In addition to the multicopter EH216-S, EHang is continuing development of the longer-range VT-30 lift-plus-cruise eVTOL. “We have conducted a comprehensive redesign and technological upgrade . . . aiming to achieve more exceptional performance,” he said, adding that details will be released “soon.”
EHang is the first eVTOL developer globally to receive type and production certification, using regulations for passenger-carrying uncrewed aircraft under 600 kg (1,320 lb.) that currently only exist in China. In July, the CAAC accepted applications by subsidiary EHang General Aviation and joint venture Hefei Heyi Aviation for air operator certificates to begin commercial operations with the eVTOLs.
To support sales and operations, the company is collaborating with local governments and customers to establish vertiports and demonstration projects in Guangzhou, Hefei, Shenzhen, Taiyuan, Wencheng, Zhuhai and elsewhere, Hu said. A training program for remote operators is in curriculum development with the Civil Aviation Flight University of China. The initial application is principally tourism flights.
As it ramps up production and operations, EHang is building out the supporting supply chain, drawing on China’s vibrant electric vehicle (EV) industry. The company is working with EV powertrain provider Zhuhai Enpower Electric, Hu said, and has partnered with GAC-incubated battery provider Greater Bay Technology to develop next-generation batteries while testing solid-state lithium-metal cells developed with Shenzhen Inx Technology.
Publicly traded EHang ended the quarter with 988 million yuan in cash and short-term funds, having raised more than $76 million (540 million yuan) through a market offering. The company has halted further share sales and proceeds already raised will be used for product development, production expansion, commercial operations and construction of a new headquarters and eVTOL command-and-control center in Guangzhou, Chief Financial Officer Conor Yang told analysts.
