Embraer is positioning India not merely as a customer for its C-390 Millennium military transport aircraft, but as a potential manufacturing and export hub serving the wider Asian market.

The Brazilian aerospace company, working alongside Mahindra Group, believes Asia could account for 40-45% of global demand in this aircraft category, translating into a requirement for around 500 aircraft over the next two decades.

Speaking to the media, Embraer Defence & Security chief executive Bosco da Costa Junior said the company views India as a strategic industrial partner rather than simply a buyer for an initial order. His comments underline Embraer’s ambition to use an Indian production base to support future exports across the region, although the projected 500-aircraft demand remains the company’s own market forecast rather than a confirmed order pipeline.

The immediate focus is the Indian Air Force’s Medium Transport Aircraft program, under which India intends to acquire 60 aircraft in a deal estimated to be worth approximately ₹1 lakh crore. Embraer and Mahindra are competing for the contract by offering the C-390 Millennium alongside a proposal for extensive local manufacturing and supply-chain development.

Under the program’s reported requirements, the winning bidder must supply the first 12 aircraft in fly-away condition, while the remaining 48 aircraft would be manufactured in India. Locally produced aircraft must contain at least 40% indigenous content, and the entire contract is expected to be completed within 11 years. The deadline for bid submissions is 13 January.

Should the C-390 be selected, Embraer and Mahindra have identified Nagpur as the preferred location for a final assembly line. Their plans include aircraft assembly, systems integration, manufacturing engineering and the creation of a domestic supplier network. The partners have also outlined potential maintenance, repair and overhaul capabilities within India. However, these industrial plans remain dependent on securing the Indian order and no production line has yet been confirmed.

The C-390 Millennium is a twin-engine jet transport aircraft designed to perform a wide range of missions. These include cargo transport, troop movement, airdrop operations, medical evacuation, search and rescue missions, firefighting and humanitarian assistance.

Embraer states the aircraft can carry a maximum payload of 26 tons and operate from temporary or unpaved runways, capabilities it believes strengthen the aircraft’s appeal as a modern multi-role platform.

India’s evaluation, however, is expected to extend beyond capability alone. Factors such as operating suitability, acquisition and lifecycle costs, delivery schedules and overall performance against Indian Air Force requirements will play a significant role in determining the outcome.

The C-390 has steadily expanded its international customer base. Sweden ordered four aircraft in 2025 under a framework that includes additional options, while the Netherlands and Austria jointly ordered nine aircraft. The platform is already in operational service with Brazil, Portugal and Hungary, giving Embraer an increasingly established export record and a growing global operator community.

Embraer nevertheless faces formidable competition. Its principal rival is Lockheed Martin’s C-130J Super Hercules, offered in partnership with TATA Advanced Systems.

The Indian Air Force already operates 12 C-130Js, which have been employed in missions supporting forward deployments in Ladakh. Existing operational experience with the aircraft, combined with an established industrial footprint in India, provides the competing bid with a strong advantage.

While Lockheed Martin and TATA are leveraging familiarity and proven local manufacturing links, Embraer is seeking to differentiate its offer through promises of larger-scale domestic production, future export opportunities and the prospect of India becoming a regional aerospace manufacturing centre.

The competition therefore extends beyond the purchase of transport aircraft. For India, it represents a test of whether a major military aviation acquisition can simultaneously strengthen defence capabilities and expand domestic aerospace manufacturing.

For Embraer and Mahindra, securing the contract would create a launch platform for the proposed Nagpur facility and support ambitions to pursue additional sales across Asia. Although the projected demand for 500 aircraft provides a compelling commercial rationale, the proposal’s success ultimately depends on winning the Indian Air Force competition.

Agencies