Audience watch the demonstration of the eVTOL module of a Xpeng AeroHT's modular flying car at the China International Aviation & Aerospace Exhibition in Zhuhai in south China's Guangdong province on November 10, 2024. (Photo credit: Long Wei/FeatureChina/AP via CNN Newsource)

(CNN) — Two flying cars crashed into each other during a rehearsal for an airshow in northeastern China on Tuesday, injuring one of their pilots and forcing one of the vehicles to the ground, where it caught fire.

Videos circulating online and featured in Chineses state-run media showed plumes of smoke billowing from one of the vehicles, while fire trucks and ambulances raced to the scene.

The accident occurred Tuesday afternoon in Changchun, Jilin Province, as the city prepared for a five-day airshow set to begin Friday. The flying cars, or electric vertical take-off and landing (eVTOL) vehicles, were developed by Xpeng Aeroht, a subsidiary of Chinese electric vehicle giant Xpeng.

In a statement to CNN, the company said the collision took place because of “insufficient spacing,” and one vehicle “sustained fuselage damage and caught fire upon landing.”

“All personnel at the scene are safe, and local authorities have completed on-site emergency measures in an orderly manner,” it said, adding that an investigation is underway.

A company employee, who asked not to be named as they were not authorized to speak publicly, told CNN that the two vehicles had been performing high-difficulty stunts in close formation. One pilot sustained minor injuries, the person added.

The eVTOL vehicles sit at the heart of China’s plans to build a “low-altitude economy,” a sector that spans flying taxis, drone deliveries and other applications in airspace below 3,000 meters.

Last year, China’s Communist Party featured “low-altitude economy” in its yearly government work report for the first time, eyeing the niche market as a new engine for growth. China’s civil aviation regulator forecast that the country’s low-altitude economy could reach a market size of $206 billion by 2025, and climb to $482 billion by 2035, according to state-run media Xinhua.

Manufacturers including Xpeng Aeroht are rushing to seize the opportunities in the market and capitalize on potential in various industries, from tourism, logistics, agriculture to disaster relief. Xpeng Aeroht describes itself as the largest flying car company in Asia on its website.

Meanwhile, cities across the country are piloting unmanned drone deliveries for parcels, food and medical supplies. By 2023, China had more than 2,000 drone manufacturers and over 20,000 companies operating unmanned aerial vehicles, according to the Communist Party-run media People’s Daily.

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