Investing.com – South Korea's largest automaker Hyundai Motors Group (KS: 138540) is stepping up its program to build a full line of flying cars. According to the head of the urban air transport division Shin Jaivon, the company expects to enter the market with them in 2028, writes Bloomberg.
Hyundai Motor is developing models that will move in a zigzag manner and can carry 5-6 people in metropolitan areas, as well as a larger version for flights between cities. In addition, the company is working on an option for the transport of goods with a carrying capacity of up to 300 kg.
“People who are constantly in a traffic jam will understand how convenient it is to get around with an aircraft,” said Shin, 61. “That's when we will see a sharp rise in demand.”
Regardless of regulatory requirements and safety barriers, a multitude of aircraft manufacturers, car manufacturers and start-ups are looking to disrupt the transportation industry with flying cars and drones to transport packages.
According to the most optimistic estimates of analysts at Morgan Stanley (NYSE: MS), such technology could lead to the development of an industry with a turnover of $ 2.9 trillion by 2040, and according to the most pessimistic estimates, turnover will be $ 615 billion.
Hyundai unveiled a concept flying car, co-developed with Uber Technologies (NYSE: UBER), at the Consumer Electronics Show in Las Vegas earlier this year. It is assumed that at first flying cars will be manned, and from about 2035 – autonomous.
In the coming years, the industry and regulators must address issues such as the type of pilot's license and how to eliminate or minimize the likelihood of accidents. New regulations and infrastructure will also be required to ensure that cars do not interfere with the movement of aircraft and helicopters.
Shin said the first flying cars could debut as early as 2023.
Hyundai's competitors include Airbus, Boeing (NYSE: BA) and startups like Lilium. The Vahana self-piloted air taxi, developed by A3, Airbus' technology-oriented outpost in Silicon Valley, made its maiden test flight in 2018, and a Boeing prototype made its maiden flight last January.
XPeng, a Chinese electric vehicle manufacturer, unveiled a prototype last month that can carry two people and travel up to 25 meters.
New Japanese flying car takes about a minute to lift off the ground
Hyundai benefits from a global sales network and divisions that can provide services and help build infrastructure for the aircraft ecosystem, Shin said. The business group includes automotive, auto parts, construction and logistics.
He believes that automakers have an edge over aircraft manufacturers because of their experience in mass production. Typically Airbus and Boeing deliver fewer than 1,000 aircraft a year, while car manufacturers can make millions.
Meanwhile, Boeing lowered its rolling forecast for aircraft demand over the next 20 years. The American aircraft company, which together with European Airbus AIR.PA dominates jet sales, predicts 43,110 commercial aircraft deliveries over the next 20 years, down 2% from the 44,040 forecast a year ago, Reuters reported.
While the aircraft fleet is still expected to nearly double, the stock is down about 3% in trading on the New York Stock Exchange on Tuesday.
In preparation, materials from Bloomberg and Reuters were used