Brazilian aerospace manufacturer Embraer is reportedly planning an ambitious production strategy for the C-390 Millennium in India if the aircraft is selected for the Indian Air Force’s Medium Transport Aircraft (MTA) programme. According to sources cited by idrw.org, the proposed Indian production facility could eventually achieve a peak output of at least 10 aircraft annually.
The proposed facility would represent far more than a final assembly line established solely to meet Indian Air Force requirements. Embraer reportedly views India as a potential regional manufacturing and export hub for the C-390, enabling aircraft produced in partnership with Mahindra to serve future customers across Asia and other international markets.
This approach aligns with Embraer’s publicly announced strategy for India. In October 2025, Embraer and Mahindra Group signed a Strategic Cooperation Agreement covering joint marketing, industrialisation and the development of India as a hub for the C-390 programme. Both companies have expressed their long-term intention to establish India as a manufacturing and support centre serving domestic as well as regional requirements.
The partnership has also expanded its localisation ambitions to include Maintenance, Repair and Overhaul capabilities in India if the C-390 is selected under the MTA programme. According to the reported sources, Embraer believes that the Indian production line could achieve an annual output of at least 10 aircraft once it reaches maturity. Such capacity could support Indian Air Force deliveries while also accommodating export orders.
The export market could play a crucial role in sustaining the production line beyond the completion of India’s initial aircraft requirement. Embraer sees significant opportunities in the global replacement market as several air forces begin retiring ageing tactical transport fleets inherited from previous generations.
Aircraft such as the Antonov An-26 and older variants of the C-130 continue to operate in several countries, creating potential replacement opportunities during the 2030s. Embraer is positioning the C-390 as a modern jet-powered alternative capable of carrying payloads of up to 26 tonnes while conducting a wide range of missions, including troop and cargo transport, airdrop operations, medical evacuation, search and rescue, and air-to-air refuelling.
The C-390’s international customer base is also continuing to expand. Uzbekistan, for instance, emerged as a new customer in February 2026 and is set to become the first operator of the aircraft in Central Asia. For Embraer, establishing a production facility in India could provide important geographical and industrial advantages when competing for future requirements across Asia, the Middle East and potentially Africa. Aircraft for these markets could eventually be manufactured in India rather than being supplied exclusively from Brazil.
Such a strategy could significantly enhance the industrial value of the MTA programme for India. Instead of establishing a production line for a limited number of Indian Air Force aircraft and winding it down after deliveries are completed, an export-oriented manufacturing hub could remain operational for a much longer period.
This would also support the development of a domestic aerospace ecosystem involving aircraft structures, components, systems integration, final assembly, and eventually maintenance and overhaul. Embraer has already indicated that it intends to work with Mahindra and Indian aerospace companies to explore opportunities for local manufacturing, assembly and supply-chain participation.
An annual production capacity of 10 aircraft would provide the Indian facility with considerable flexibility. If the Indian Air Force places a substantial order, production could initially focus on domestic deliveries before progressively allocating capacity toward international customers.
However, the reported target of producing 10 C-390 aircraft annually should currently be viewed as a potential mature production capability rather than a confirmed delivery schedule. Actual production rates would depend on factors such as the size and timing of the Indian order, localisation requirements, supply-chain readiness and future export demand.
The Indian Air Force’s MTA competition represents a significant procurement opportunity, with the Ministry of Defence advancing plans to acquire a new generation of transport aircraft. Embraer’s proposal therefore appears to extend beyond the operational capabilities of the C-390 itself. The Brazilian company is effectively positioning India as a potential second major industrial centre for the aircraft.
If the C-390 secures the MTA contract and the proposed manufacturing strategy is implemented, India could eventually produce advanced military transport aircraft not only for its own Air Force but also for international customers seeking replacements for ageing An-26s, C-130s and other legacy airlifters.
