Leading eVTOL OEMs Hold Steady In June Reality Index

The ranking of electric air taxi startups was unchanged in the latest edition of the AAM Reality Index, with Joby Aviation and Volocopter leading the pack followed by a three-way tie between Archer Aviation, Beta Technologies and EHang.

Joby’s front-runner position, with a score of 8.7 out of 10, largely stems from its hefty cash cushion relative to its main competitors, according to Sergio Cecutta, founder and CEO of SMG Consulting, which publishes the bimonthly AAM Reality Index in conjunction with Aviation Week. As a comparison, the company finished the March quarter with nearly $1 billion in cash versus roughly $450 million for rival Archer.

Joby also benefits from its production line, which is capable of churning out dozens of aircraft per year compared to single-digit production capacity at rival Archer, Cecutta says.

Volocopter’s runner-up position, with a score of 8.6, can be attributed to the German startup’s progress in beginning assembly of its production-conforming VoloCity prototype. “They are also very advanced in terms of the technology readiness level,” Cecutta adds. 

Volocopter is expected to be the first Western company with a certified electric-vertical-takeoff-and-landing (eVTOL) vehicle, but China’s EHang expects to beat it to the punch. The company recently said it was 90% through the final stage of type certification with the Civil Aviation Administration of China (CAAC) and expects to complete the certification process “imminently.”

Still, Cecutta says he has some reservations about EHang, including the fact that development of its larger VT-30 aircraft appears to have stalled. Volocopter, by comparison, has already successfully transitioned with its four-passenger VoloRegion prototype. “When it comes to EHang, we have no information that the VT-30 has transitioned, and the VoloRegion has transitioned,” he says. 

EHang, Archer and Beta were all tied for third place with a score of 8.1. 

While most of the biggest eVTOL names were unchanged in the June index, Chinese company Aerofugia managed to climb from 6.4 to 6.7, boosted by its financial backing by carmaker Geely. “We think Aerofugia has enough money to get all the way to building something that is conforming, although certifying is a different story,” Cecutta says.

Reflecting on the state of the advanced air mobility (AAM) sector halfway through 2023, Cecutta said it is time for companies to focus on achieving certification and figuring out how to satisfy regulators’ demands. He also observed that investor attention seems to be shifting to regional air mobility from urban air mobility (UAM), noting that investors had previously “underestimated” the market opportunity for electric regional aircraft.

“It’s interesting because we see that a lot of the latest announcements across the industry are for eCTOL [electric-conventional-takeoff-and-landing] aircraft, many of which are hybrid, whereas previously it was mostly pure electric,” Cecutta notes. “Hybrid makes a lot of sense; batteries work best with a wing, a runway and a turbogenerator, because that allows you to use as much of the battery as you can without stretching it out, so you get better range and longer lifespan.”

Cecutta also says he was pleased to see positive momentum coming from the FAA with its recently published notice of proposed rulemaking on eVTOL pilot training and operational standards. But he said the industry needs to do a better job to achieve regulatory harmony between the FAA and the European Union Aviation Safety Agency (EASA) to ensure that eVTOL aircraft can safely operate in both jurisdictions.

“It’s a good thing to see some positive direction from the regulators, but the fundamental issue is that we need to figure out how to come together and harmonize these regulations,” he says.