EHang Holdings Ltd (EH)

[NMBR1]

EHang Collaborates with KC Smart Mobility to Enhance Sales of Autonomous eVTOL in Hong Kong, Macau, and China AInvest Fri, Jul 19, 2024 ET




EHang Holdings has signed a deal with KC Smart Mobility to advance the sale and operation of its EH216-S pilotless eVTOL aircraft in Hong Kong, Macau, and two cities in China. KC Smart Mobility aims to buy 30 EH216-S units from EHang. This partnership underscores the growing interest in eVTOL transportation as a sustainable mobility solution. The urban air mobility (UAM) sector is witnessing significant growth, with EHang Holdings (Nasdaq: EH) leading the way in this innovative industry. Recently, the company signed a deal with KC Smart Mobility, a leading mobility solutions provider, to expand the sales and operation of EHang's EH216-S pilotless electric vertical takeoff and landing (eVTOL) aircraft in Hong Kong, Macau, and two cities in China [1]. This strategic partnership underscores the increasing interest in EVtol transportation as a sustainable mobility solution. KC Smart Mobility aims to purchase 30 units of EH216-S aircraft from EHang, marking a significant step forward in the deployment of these innovative vehicles. The total contract price for these units is expected to reach RMB113 million (USD15.6 million) [1]. Furthermore, KC Smart Mobility has signed a purchase plan agreement for an additional 450 units over the next two years. This collaboration between EHang and KC Smart Mobility is not limited to sales. The companies plan to work together to establish command-and-control centers, marketing and exhibition centers, operations centers, after-sales service centers, research institutes, and other necessary infrastructure to support the growth of the UAM industry in these regions [1]. The strategic location of the partnership is noteworthy, as Hong Kong, Macau, and the two unnamed cities in China have significant potential for UAM adoption. Hong Kong, in particular, is known for its dense population and limited land space, making EVtol transportation an attractive solution for reducing traffic congestion and improving overall mobility [2]. Moreover, the Chinese government is actively promoting the development of the general aviation industry, with Shanxi Province being designated as a national demonstration province for this purpose [1]. Taiyuan City, one of the national civil unmanned aviation demonstration zones, is expected to benefit significantly from the growth of the UAM industry in the region [1]. In conclusion, the partnership between EHang and KC Smart Mobility represents a significant milestone in the deployment of EVtol transportation in Hong Kong, Macau, and China. With the potential to reduce traffic congestion, improve overall mobility, and promote sustainable transportation solutions, this strategic collaboration is expected to have a positive impact on the growth of the UAM industry in these regions. References: [1] EHang Secures RMB113 Million Order for 50 Units of EH216-S Pilotless Electric Vertical Takeoff and Landing Aircraft from Taiyuan Xishan Ecological Tourism Investment Construction Co., Ltd. (Xishan Tourism). (2024, May 31). Retrieved August 18, 2024, from https://ir.ehang.com/news-releases/news-release-details/ehang-secures-rmb113-million-order-50-units-eh216-s-pilotless [2] The Future of Urban Air Mobility in Hong Kong. (2022, October 12). Retrieved August 18, 2024, from https://www.forbes.com/sites/forbestechcouncil/2022/10/12/the-future-of-urban-air-mobility-in-hong-kong/?sh=79e00c75782e





How does the collaboration between EHang Holdings and KC Smart Mobility benefit EHang's sales of autonomous eVTOL in Hong Kong, Macau, and China? The collaboration between EHang Holdings and KC Smart Mobility is expected to benefit EHang's sales of autonomous eVTOL in Hong Kong, Macau, and China. With the addition of KC Smart Mobility as a partner, EHang can leverage its expertise and resources to enhance the sale and operation of its eVTOL aircraft. This collaboration will likely result in increased market demand for EHang's product, leading to higher sales revenues. Additionally, by joining forces with KC Smart Mobility, EHang can potentially expand its market share and strengthen its position in the competitive eVTOL transportation industry.