City unveils incentives for low-altitude economy

From: Shenzhen Daily | Updated:2023-08-18

Shenzhen is rolling out a series of measures aimed at bolstering the high-quality development of the burgeoning low-altitude economy, Shenzhen Economic Daily reported.

The city will offer subsidies of up to 50 million yuan (US$6.95 million) to enterprises that choose Shenzhen as their operation base, increase investments, achieve technological breakthroughs, or venture into the Electric Vertical Take-off and Landing (eVTOL) sector, according to a draft plan released by the municipal transport bureau to seek public suggestions.

Enterprises engaged in the manufacturing or operation of eVTOL vehicles, with a paid-in registered capital exceeding 20 million yuan, will receive subsidies equivalent to 5% of their registered capital, which will be capped at 20 million yuan, if their operating revenue has reached 40 million yuan in the second year following their settlement in the city.

Recognizing that innovation is the lifeblood of any evolving industry, Shenzhen is offering substantial financial support to foster technological advancements. Low-altitude economy enterprises engaged in core component research and development, manufacturing and applications of eVTOL are eligible for grants of up to 1 million yuan. The city will subsidize at most 10 projects a year.

To expand application scenarios, enterprises that open logistics routes at low altitude will each receive up to 20 million yuan a year depending on indicators such as the size of unmanned aerial vehicles and the scale of their route networks.

Shenzhen aims to achieve over 1.5 million and 3 million drone-based commercial cargo flights in 2024 and 2025, respectively, according to the draft plan.