Aerospace companies Embraer and Mahindra Group are eyeing India's proposed billion-dollar deal. India is planning to purchase around 80 medium transport aircraft (MTAs). Meanwhile, Embraer and Mahindra Group have selected Nagpur as a potential manufacturing centre.
Embraer Mahindra C-390 Millennium: Embraer and Mahindra Group have intensified their preparations for India's possible big military transport aircraft deal. Both companies are pursuing the C-390 Millennium for the Indian Air Force's proposed program of about 80 medium transport aircraft (MTA). If the Government of India selects this aircraft and the order is received from the Indian Air Force, the final assembly line for the C-390 Millennium can be established in Nagpur, Maharashtra.
The scheme is related to enhancing technological capabilities in aircraft manufacturing, local supply chain and aerospace sector in India. However, setting up of the proposed production hub in Nagpur is not yet part of any final government procurement decision. This will entirely depend on which aircraft is selected for the MTA program of the Indian Air Force.
What plans to prepare in Nagpur?
According to Embraer and Mahindra, both the companies are working towards creating an industrial and support ecosystem for the C-390 Millennium in India. Under this, Nagpur has been selected as the location of the possible final assembly line. The proposed facility will focus on local assembly of aircraft as well as manufacturing engineering, system integration and developing the Indian supply chain. The objective of the scheme is not to be limited to just assembly of aircraft in India, but to develop the entire aerospace support system.
Both the companies are also working with the Maharashtra government for this preparation. Companies say that if the C-390 Millennium is selected for the MTA program, work on the necessary industrial infrastructure can be started rapidly.
Why does Indian Air Force need MTA?
The proposed Medium Transport Aircraft program of the Indian Air Force aims to replace aging medium-range transport aircraft with modern platforms. According to reports, there are plans to purchase around 80 aircraft. This can help in modernizing the military transport capability of the Air Force. Apart from C-390 Millennium, Airbus A400M and Lockheed Martin C-130J Super Hercules are also major contenders in this race. The Indian Air Force already operates 12 C-130J Super Hercules aircraft.
What did Mahindra say about Nagpur?
Vinod Sahay, Group Executive Board Member, Mahindra Group, said that the company is committed to developing world-class aerospace systems in India. According to him, work is being done to create the necessary industrial capacity to handle a large defense program through collaboration on the C-390 Millennium with Embraer.
He described Nagpur as a potentially important place to develop such industrial capacity. Also, he mentioned the cooperation related to land and other necessary facilities from the Maharashtra government. However, he clarified that these preparations will proceed only when the Indian Government selects the C-390 Millennium and the Indian Air Force places the corresponding order.
Embraer called the partnership an important step
Bosco da Costa Jr., President and CEO of Embraer Defense and Security, described Nagpur's identification as an important step towards strengthening the partnership with Mahindra. According to the company, developing production and support capabilities in India can help strengthen the country's aerospace ecosystem.
Embraer plans to work with partners to enhance local industrial capacity in India and the domestic defense supply chain.
What capabilities will come in the C-390 project?
If the contract for C-390 Millennium is awarded, a variety of capabilities can be developed at the proposed Nagpur hub. These include final assembly of the aircraft, system integration, manufacturing engineering and connecting local companies to the supply chain. Apart from this, there are also plans to develop facilities like Maintenance, Repair and Overhaul (MRO), training and after-sales support during the operation of the aircraft. This could create long-term industrial opportunities for Indian aerospace companies.
When did the partnership between Embraer and Mahindra start?
Embraer and Mahindra began the collaboration through an MoU in February 2024. After this, both the companies took forward the strategic cooperation in October 2025. Its main objective was to jointly introduce the C-390 Millennium for the Indian Air Force's MTA program and develop associated industrial capabilities in India.
The partnership includes plans to collaborate in activities such as local manufacturing, aircraft assembly, supply chain, industrial production and MRO. In February 2026, both the companies also put forward their plans to develop MRO capability for the C-390 Millennium in India.