(Yicai) Sept. 4 -- Xpeng Aeroht, the flying car subsidiary of Chinese new energy vehicle startup Xpeng Motors, will deliver more than 10,000 units per year by 2026, likely cutting annual costs by 15 to 20 percent, according to its president.

The pain points that flying cars must address include short range, high cost, and airworthiness certification, said Zhao Deli, who is also the founder of Xpeng Aeroht. The firm has had preliminary contact with carmaker Seres Group, whose main objective is to address the short-range issue.

Xpeng Aeroht unveiled its electric vertical take-off and landing aircraft, the Land Aircraft Carrier, in Guangzhou yesterday. The vehicle, priced at up to CNY2 million (USD280,000), is mainly intended for passenger flights, with possible future expansion into other areas.

The Land Aircraft Carrier will begin pre-sales orders in China by the end of the year while starting mass production and deliveries by 2026. It will gradually expand into overseas markets, including the Middle East, Brazil, and New Zealand.

Xpeng Aeroht has inked deals for more than 70 flight camps and plans to establish over 200 of them by the end of the year. Its new Guangzhou factory might start construction this quarter. It also secured USD150 million in a Series B1 financing round and kicked off its Series B2 fundraiser last month.

Morgan Stanley predicted that there will be a period of rapid development for flying cars over the next two decades. The flying car market will likely be worth USD300 billion by 2030 and USD1.5 trillion by 2040, while China may become the world's largest urban low-altitude transportation market.

Xpeng's plans to go public are undecided, Zhao noted, adding that he hopes the Guangzhou-based company will list when the capital market is favorable and its sales are strong.

Editor: Martin Kadiev