Under the agreement, EHang and GAC Group will join forces in such areas as R&D, production and sales to target the low-altitude aerial market.
In the future, clients who take delivery of EH216-S will start exploring the prospects of commercialization in low-altitude air travel and urban sightseeing.
He emphasized that the Guangzhou-based firm is at a stage of commercialization, and to ensure flight safety, it will adopt stringent quality standards in production.
Hefei has since become a magnet to companies in emerging sectors, thanks to its daring vote of confidence in incipient segments which it believes represent the future -- eVTOL included.
This provides a foundation for more efficient and wide-scale airworthiness certification for aircraft of this kind in China and abroad, the release says.
Bao'an has been in an overdrive to attract leading UAV and eVTOL firms to set up offices in or relocate to this area, in its quest to construct an urban air mobility (UAM) network.
Across the world, as regulators ease restrictions on low-altitude airspace, innovations such as eVTOL have sprung up to meet demands for alternative forms of urban mobility.
EHang's losses are partly attributable to Covid-induced supply chain disruptions and market headwinds, among other reasons. Despite dwindling revenue and widening losses, EHang pointed to a bright spot of its business.
As technologies progress, drones are finding wider use in agriculture, logistics, rescue, tourism and photography, which led to a spike in demand.