China aerospace firm ramps up global expansion amid fierce domestic drone competition

Chinese civil drone maker Aerospace Times Feipeng is accelerating its global expansion push with a focus on Southeast Asia and the Middle East, as it seeks to navigate intense domestic competition, a company executive said.

"The domestic Chinese market is too competitive. Going overseas is a step we must take," Harry Kang, president of Feipeng's international business, told Reuters on the sidelines of the Singapore Airshow, where the unlisted company is exhibiting for the second time.

Manufacturers in China, the world's top drone-making nation, are testing larger payloads while transport companies are planning air taxi services with and without crew as the country loosens airspace restrictions and offers incentives to develop a "low-altitude economy."

At the airshow, Feipeng unveiled two new drone models: an inspection drone priced between $180,000 and $200,000 and a specialised platform designed for forest fire control and maritime rescue priced at $40,000 to $50,000.

The company aims to increase overseas sales from the current 10%-15% to 50% within three years, though the timeline will depend on factors such as regulatory acceptance and market confidence, Kang said.

Feipeng began its international expansion in 2024, unveiling its FP-981C Sagittarius cargo drone - priced between $400,000 and $420,000 - at that year's Singapore Airshow. The company has named its drones after the 12 zodiac signs to make them more familiar and memorable to international users.

The company is focusing primarily on Southeast Asia and the Middle East, where it has witnessed rising demand.

The company, which Kang said had achieved annual revenues exceeding 100 million yuan ($14.41 million) for two consecutive years, is expanding in key markets such as Indonesia, Malaysia and Thailand.

In the Middle East, where Kang sees drones as a solution to logistical challenges in desert environments, the company is eyeing opportunities notably in Saudi Arabia, the region's largest market.

Indonesia, comprised of more than 17,000 islands, is a crucial market for the company and it has already partnered with government agencies in charge of emergency and disaster response efforts, Kang said.

Indonesian customers generated the most inquiries at the company's booth during the airshow, he added. "It's our main target market of the year."

Despite the competitive nature of the industry, Kang stressed that the company holds a pricing edge, with its drones generally costing less than international competitors thanks to its fully domestic supply chain.

($1 = 6.9415 Chinese yuan renminbi)

-Reporting by Julie Zhu and Huey Mun Leong; Editing by Jamie Freed/Reuters