Xpeng's Plan to Commercialise 'Flying Cars'

Chinese EV manufacturer Xpeng is positioning itself for significant commercial expansion as it prepares to scale production of its flying vehicle technology.

The company's ambitious timeline targets 2027 for large-scale manufacturing, a move that could open substantial new revenue streams in the emerging advanced air mobility market.

The financial opportunity in this sector could be considerable. According to McKinsey, passenger advanced-air-mobility operators could rival today's largest airlines in flights per day and fleet size by 2030, suggesting a rapidly growing market that Xpeng aims to capture early.

Building production capacity for growth

Xpeng's Land Aircraft Carrier, a fully electric flying vehicle paired with a grounded car component, has already secured global orders exceeding 7,000 units.

This early demand signals potential revenue generation before full-scale production begins. The company's Vice Chairman and President, Brian Gu, told Reuters that he expects to start large-scale production of these vehicles in 2027.

The mass production facility commenced trial production in November 2025 and successfully rolled off its first aircraft.

Xpeng has planned an annual production capacity of 10,000 units, with initial capacity set at 5,000 units. At full capacity, the production line could deliver one aircraft every 30 minutes, demonstrating the company's strategy to achieve economies of scale rapidly.

The Land Aircraft Carrier features what the company describes as an "intelligent air cockpit and a four-axis integrated single-stick control system", enabling "even novices to easily master it through training".

This design approach could expand the addressable market beyond experienced pilots to general consumers.

Diversifying the product portfolio

Beyond the electric model, Xpeng is developing the A868, a hybrid variant designed for longer commercial applications.

The A868 adopts a full tilt-rotor configuration and uses an aviation-grade hybrid-electric core expected to achieve a range of 500 km, with maximum cruising speeds potentially reaching 360 km per hour.

The six-seater cabin is designed to "meet the needs of business travel" according to the company, positioning the product for the corporate travel market.

Both vehicles are being developed for low altitude travel through Xpeng's subsidiary Aridge, representing a strategic vertical integration approach.

The electric model employs a six-axis, six-propeller dual-ducted configuration, with safety systems covering power propulsion, energy management, high and low voltage power supply, flight control navigation, flight operation and bus communication.

Leveraging partnerships for market expansion

Xpeng's growth strategy extends beyond flying vehicles.

The company maintains a commercial partnership with Volkswagen, which produced its first jointly developed car in March 2026. The ID.UNYX 08, an all-electric full-size SUV, forms part of Volkswagen's "In China, for China" strategy.

Speaking to Reuters, Brian said the company would start robotaxi tests in the southern Chinese city of Guangzhou in 2026 and that 2027 will be a "critical year" for "tests around the world with partners".

The robotaxi technology, which Xpeng describes as China's first full-stack self-developed and mass-produced autonomous vehicle, is equipped with four Turing AI chips delivering on-board computing power of up to 3,000 tera operations per second.

Brian told Reuters that there is potential to increase cooperation with the German carmaker. The international expansion strategy appears to be gaining traction.

Speaking to Reuters, Brian said that in 2025, Xpeng generated about 10% of its sales volume and around 15% of its revenue from overseas sales.

The company is also developing humanoid robots featuring what it describes as "a humanoid spine, bionic muscles and fully covered flexible skin".

According to Reuters, large-scale production is expected in the fourth quarter of 2026, adding another potential revenue stream to Xpeng's diversified technology portfolio.