A mainland Chinese drone manufacturer owned by a carmaking giant has revealed that it is eyeing Hong Kong as a future market for its flagship passenger-carrying flying car, as the city embarks on a new phase of developing its low-altitude economy.

Aerofugia, a subsidiary of China’s second-largest carmaker, Zhejiang Geely Holding Group, said that Hong Kong’s traffic congestion, high-density urban core, and scattered outlying islands were not just challenges but unique advantages positioning the city as a prime hub for the nascent low-altitude economy.

The news came a week after Hong Kong leader John Lee Ka-chiu announced in his policy blueprint that the government would cover scenarios including carrying passengers and using cross-boundary routes in phase two of its trial programme on drone technology.

Speaking to Hong Kong press in the city of Chengdu, Sichuan province, on Monday, Hou Yi, a senior product manager at Aerofugia, outlined why the city’s geography and economy made it an ideal testing ground for urban air mobility.

“Hong Kong’s economic scale is substantial, and its consumption level is relatively high,” Hou said.

“Furthermore, its small area means ground traffic is typically very congested. Against this backdrop, developing urban low-altitude travel is very suitable for Hong Kong.”