(Yicai) Jan. 5 -- The Shanghai government has issued new guidelines to spur the local electric vertical take-off and landing aircraft sector over the next three years, with the goal of becoming the eVTOL capital of the world.

Shanghai will set up a complete supply chain system for new low-flying aircraft by 2028, forming an advanced manufacturing cluster for the low-altitude economy and achieving the title of "the World's eVTOL Capital" with prominent comparative advantages, according to a policy document released yesterday. In addition, the core industries of the low-altitude economy should reach almost CNY80 billion (USD11.4 billion).

The document calls for focusing on mainstream technological directions by combining the cultivation of local companies with attracting external projects. It aims to form a cluster of 10 leading firms in the low-altitude economy, including eVTOL, industrial-grade drones, and new energy general aviation aircraft makers.

Shanghai will produce over 500 new low-flying aircraft a year by 2028, driving more than CNY20 billion of additional investment across the supply chain and establishing a national-level testing and verification platform for new prototypes.

Shanghai will provide up to CNY100 million (USD14.3 million) for high-tech and highly contributive manufacturing projects, such as eVTOLs and ton-class industrial drones. The government will also guide low-altitude industry funds to collaborate with social capital to provide equity investment support.

In addition, Shanghai will strengthen its support for new aircraft assembly manufacturing projects in terms of land, talent services, special funding, and other essential resources. It will also provide comprehensive guarantees for the establishment of low-flying aircraft assembly and key supporting projects.

The low-altitude economy is centered around the development of new aircraft as its core competitiveness, emphasizing disruptive tech innovation and actively promoting low-altitude flights involving manned and unmanned aircraft. The innovative economic model drives the integrated development of design and manufacturing, operations, and consumption across multiple fields.

Shanghai, one of the first Chinese cities to develop a local low-altitude economy, boasts a strong foundation in the eVTOL sector and a well-established relevant ecosystem. About half of all Chinese eVTOL innovation firms are based in the city, including industry leaders Vertaxi, AutoFlight, TCab Tech, Volant Aerotech, and Pantuo Aviation.

Editors: Tang Shihua, Martin Kadiev