National People's Congress Representative He Xiaopeng: Recommends Clarifying Tax Classification for Flying Cars Meeting Airworthiness Standards and Implementing Phased Tax Reduction and Exemption Support Policies

Beijing Business Daily (Reporter Lin Yuwei) reported that on March 4th, the 2026 National People’s Congress opened. He Xiaopeng, a delegate of the 14th National People’s Congress and Chairman and CEO of XPeng Motors, submitted a proposal titled “Suggestions on Optimizing Low-Altitude Airspace Management and Tax Policies for the Flying Car Industry” focusing on key areas of technological and industrial innovation.

The “14th Five-Year Plan” explicitly designates the low-altitude economy as a nationally strategic emerging industry, positioning it as a new pillar industry for growth and creating a new economic growth point. As a strategic emerging product deeply integrated with the low-altitude economy, new energy vehicles, and intelligent equipment, flying cars are vital for cultivating new productive forces, building a modern three-dimensional transportation system, and seizing the high ground in global high-end equipment manufacturing. Currently, China’s flying car industry is in a critical stage of accelerated technological research, scene pilot implementation, and pre-industrialization efforts.

However, the over-concentration of airspace approval authority limits grassroots and market entities from autonomous airspace allocation. Cross-departmental coordination mechanisms are not yet fully established. Additionally, there is no clear standard for classifying the tax status of flying cars, leading to tax policy uncertainties that restrict the industry’s scale development and the full potential of the low-altitude economy.

Therefore, He Xiaopeng proposed two institutional recommendations: to delegate low-altitude airspace management authority and establish a tripartite coordination mechanism among military, government, and civilian sectors; select regions with mature low-altitude economy industries, favorable airspace resources, and relatively complete supporting infrastructure to pilot refined low-altitude airspace management, and appropriately delegate airspace management authority to sub-provincial or higher-level local governments to fully motivate local governments to promote the development of the low-altitude economy.

Furthermore, based on the core attributes and functional positioning of flying cars, clearly classify the tax status of compliant aircraft that meet airworthiness standards, and implement phased tax reductions and support policies to reduce R&D, manufacturing, and market promotion costs for enterprises, thereby stimulating market demand. Additionally, establish a dynamic adjustment mechanism to gradually optimize the intensity and duration of tax incentives, ensuring a smooth transition from policy support to market-driven operations, and promote industry transformation from policy-driven to market-driven development.

In He Xiaopeng’s view, the flying car industry is the key breakthrough for China’s low-altitude economy development. Overcoming institutional bottlenecks in airspace management and tax policies, innovating policy support, and strengthening element guarantees will drive China’s flying car industry toward technological independence, standard leadership, and industry dominance, helping the low-altitude economy become an important growth pole for cultivating new productive forces and promoting high-quality economic development.