Ehang 184, a passenger drone, takes a test flight in Guangzhou in February. [Photo by Feng Zhoufeng/For China Daily]

EHang Holdings Limited, the world's leading autonomous aerial vehicle technology platform company, will build a new autonomous aerial vehicle production facility in Yunfu, Guangdong province, the company said.

The facility, with a planned initial annual capacity of 600 units and an investment of 42 million yuan ($6 million) supported by the local government, aims to become an industry-leading AAV production center, including an R&D facility for air mobility solutions and a training center for operations and technical talents.

"We welcome EHang to establish its new production facility for the cutting-edge AAV products in Yunfu. It is expected to bring strong vitality to the local high-tech communities and create hundreds of new jobs for local talents," Shi Donghong, deputy mayor of Yunfu, said.

"The increasing market demands and commercialization of AAVs in China are driving us to expand our production and upgrade our manufacturing capabilities," Hu Huazhi, founder, chairman and CEO of EHang, said.

The Yunfu facility serves as an expansion of the company's existing facility and will support the growth of its air mobility business, Hu said.