Mahindra, Embraer identify Nagpur for potential C-390 aircraft assembly line

Fresh updates from the financial markets indicate that The Mahindra Group and Brazilian aerospace manufacturer Embraer on October 1 stated they have identified Nagpur, Maharashtra, as the location for a potential Final Assembly Line (FAL) for the C-390 Millennium military transport aircraft.

The proposed facility is contingent on the aircraft being selected by the Government of India and receiving an order under the Indian Air Force's (IAF) Medium Transport Aircraft (MTA) procurement programme.

Working in coordination with the Maharashtra government, the two partners are making initial preparations to expedite industrial infrastructure development should the partnership win the defence contract. The state government has assisted with related requirements and allocated land in Nagpur for the prospective facility.

The proposed Nagpur plant is intended to cover aircraft assembly, system integration, manufacturing engineering and local supply chain integration. If awarded the contract, Mahindra and Embraer plan to integrate domestic aerospace suppliers for manufacturing, aftermarket services, maintenance, repair and overhaul (MRO), training and lifecycle backing, in line with India's Atmanirbhar Bharat and Make in India initiatives.

Partnership for IAF's MTA programme

The proposed facility builds on earlier agreements between Mahindra and Embraer. The two firms initially signed a Memorandum of Understanding (MoU) in February 2024, followed by a Strategic Cooperation Agreement in October 2025 to jointly pursue the IAF's MTA contract.

In February 2026, the partners expanded their framework to include plans for developing dedicated local C-390 MRO capabilities in India, subject to the aircraft being selected under the programme.

The Embraer C-390 Millennium is a multi-mission tactical transport aircraft with a maximum payload capacity of 26 tonnes and the capability to operate from temporary or unpaved runways. Its missions include troop and cargo transport, aerial refuelling, medical evacuation, search and rescue, disaster response and aerial firefighting.

Under the proposed structure, the partnership aims to combine Embraer's original equipment manufacturing and engineering expertise with Mahindra's domestic industrial manufacturing base.

Both firms stated they will continue engaging with central defence authorities, state government bodies and local aerospace vendors as procurement evaluations progress.