Brazilian aerospace giant Embraer and India's Mahindra Group have unveiled ambitious plans to establish a Maintenance, Repair, and Overhaul (MRO) facility in India dedicated to the C-390 Millennium military transport aircraft. The announcement, made on 19 February 2026, marks a significant step in deepening bilateral aerospace ties between Brazil and India.

This development stems from a broader strategic partnership between the two companies. It directly supports the C-390 Millennium's strong positioning in the Indian Air Force's (IAF) Medium Transport Aircraft (MTA) program.

The IAF seeks to replace its ageing fleet of Antonov An-32s with up to 56 modern medium transport aircraft, a procurement valued at over $2.5 billion.

The proposed MRO facility will enable local sustainment of the C-390 platform, should it secure the MTA contract. Located strategically in India, it promises to reduce turnaround times for maintenance, cut logistics costs, and enhance operational readiness for the IAF. Mahindra's involvement leverages its expertise in defence manufacturing and aerospace services.

Embraer has positioned the C-390 as a versatile, cost-effective alternative to competitors like the Airbus A400M. The aircraft boasts impressive capabilities, including short takeoff and landing performance, aerial refuelling, and compliance with NATO-STANAG standards. Its modern fly-by-wire system and low life-cycle costs have appealed to global operators such as Portugal, Hungary, and South Korea.

For India, indigenous MRO capabilities align with the 'Atmanirbhar Bharat' initiative, promoting self-reliance in defence. Mahindra, with its established presence in aerospace via Mahindra Aerospace, brings proven skills in airframe maintenance and avionics. The partnership could extend to technology transfer, local component sourcing, and workforce training.

The MTA program has seen intense competition. After a decade of evaluations, the C-390 emerged as a frontrunner in 2024 trials, outperforming rivals in payload capacity and rugged airfield performance. Official selection is anticipated later in 2026, pending government approvals and offsets commitments.

This collaboration builds on prior India-Brazil defence engagements. Embraer previously supplied ERJ-145-based airborne early warning aircraft to the IAF in the early 2000s. Renewed ties reflect growing South-South cooperation in defence, amid India's push to diversify suppliers beyond traditional Western partners.

Economically, the MRO facility could generate thousands of skilled jobs in India's defence ecosystem. It aligns with the government's target to expand the domestic MRO market, currently underdeveloped at under 1% of global capacity despite a massive civil and military fleet. Projections estimate India's aviation MRO sector could reach $2.5 billion by 2030.

Challenges remain, including regulatory hurdles from the Directorate General of Civil Aviation (DGCA) and Ministry of Defence. Offset obligations under the MTA tender require 50% localisation, which Embraer and Mahindra aim to meet through joint ventures. Geopolitical factors, such as US sanctions risks on Brazilian tech, must also be navigated.

The announcement underscores Embraer's aggressive global expansion for the C-390, with over 100 units ordered worldwide. For Mahindra, it strengthens its portfolio alongside partnerships with Lockheed Martin and Boeing. Industry observers view this as a win-win, potentially paving the way for co-production of C-390 variants in India.

As India modernises its airlift capabilities amid border tensions with China and Pakistan, the C-390's tactical edge—such as paradrop operations and humanitarian missions—holds strategic value. Successful implementation of the MRO facility could position India as a regional hub for C-390 support, exporting services to other operators.

Agencies