Two flying cars crashed during rehearsals for an air show in north-east China, raising fresh safety concerns over the technology.
The Xpeng AeroHT vehicles collided in mid-air on Tuesday before one caught fire during landing, according to the company’s statement.
Xpeng confirmed that everyone at the scene was safe, though CNN reported one person was injured, citing an anonymous company employee.
The incident happened during preparations for the Changchun Air Show, which is due to open later this week in Jilin Province.
Footage on Chinese social media site Weibo appeared to show a flaming vehicle on the ground, with fire crews attending.
Xpeng AeroHT said one vehicle sustained serious fuselage damage before catching fire upon landing, but emergency measures were completed quickly.
The company is one of the largest electric vehicle makers globally and has recently expanded operations into the European market.
Its AeroHT subsidiary has developed electric flying cars capable of vertical take-off and landing, with a target price of $300,000 each.
In January, the company claimed to have received around 3,000 orders, signalling strong interest despite unresolved safety and regulatory hurdles.
The crash highlights risks for China’s ambition to dominate the so-called “low-altitude economy” by pushing adoption of new aerial technologies.
Analysts say Beijing wants to mirror its success in electric cars by leading the global race in commercial flying transport.
For now, the incident will sharpen debate about public acceptance, infrastructure needs, and the readiness of this unusual form of travel.