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

Mahindra Group and Brazilian aircraft manufacturer Embraer have identified Nagpur as the potential location for a final assembly line for the C-390 Millennium military transport aircraft as the two companies step up preparations for the Indian Air Force's Medium Transport Aircraft (MTA) programme.

The proposed facility, however, is conditional on the Indian government selecting the C-390 Millennium and placing an order under the MTA programme. Mahindra and Embraer are working with the Maharashtra government to put in place the industrial infrastructure needed to move quickly if their aircraft is selected.

Nagpur emerges as hub

Mahindra said the Maharashtra government had allotted land in Nagpur and was assisting the companies with associated requirements for the proposed project.

The facility is envisaged as a major aerospace manufacturing operation covering aircraft assembly, system integration, manufacturing engineering and development of an Indian supply chain. It would also bring aircraft manufacturing know-how into the country and potentially expand India's role in Embraer's global C-390 ecosystem.

The two companies are currently in preparatory discussions to create a wider industrial and support network for the aircraft rather than merely establishing an assembly operation.

“Mahindra is committed to building a globally competitive aerospace ecosystem in India and to creating meaningful manufacturing and technology capabilities that contribute to the country's Atmanirbhar Bharat ambitions,” Vinod Sahay, Member of the Group Executive Board at Mahindra Group, said.

Sahay said Nagpur offered a “compelling opportunity” as the companies prepared the industrial ecosystem required to support the programme at scale.

Deal depends on IAF selection

Both companies stressed that the Nagpur plans remain conditional. The final assembly line would proceed only if the C-390 is selected by the Indian government and an order is placed for the IAF's MTA requirement.

This distinction is important because the companies are positioning industrial infrastructure in advance of the procurement decision rather than announcing a confirmed aircraft manufacturing programme.

Mahindra and Embraer intend to progressively integrate Indian aerospace companies into the C-390 ecosystem if they secure the programme. Indian suppliers could eventually participate in manufacturing, aftermarket services, training and lifecycle support.

The plan is aligned with the government's Make in India and Atmanirbhar Bharat programmes, which seek greater domestic participation and technology capabilities in defence manufacturing.

Partnership expanded since 2024

Mahindra and Embraer began formal cooperation on the C-390 in February 2024, when they signed a memorandum of understanding to jointly pursue the IAF's MTA requirement.

That relationship was expanded through a Strategic Cooperation Agreement in October 2025, broadening the scope to include industrialisation, local manufacturing and assembly, supply-chain development and maintenance, repair and overhaul activities.

In February this year, the companies announced plans to work towards establishing C-390 MRO capability in India if the aircraft is selected for the MTA programme.

The proposed Nagpur assembly facility now takes that localisation strategy further by identifying where the aircraft itself could potentially be assembled in India.

Local supply chain planned

Embraer brings aircraft design, engineering and manufacturing expertise to the partnership, while Mahindra has an established manufacturing base and access to India's industrial supply chain.

The companies intend to use that combination to develop a local aerospace ecosystem capable of supporting the aircraft throughout its operational life.

Bosco da Costa Jr., President and CEO of Embraer Defense & Security, said identifying Nagpur was an important step towards creating a long-term aerospace ecosystem in India.

Embraer would continue working with Mahindra, the Maharashtra government and Indian industry to strengthen domestic aerospace and defence capabilities, he said, while reiterating that the industrial plans depended on the C-390's selection.

26-tonne payload capacity

The C-390 Millennium is a twin-engine multi-mission military transport aircraft designed to undertake cargo and troop transport, airdrop operations, medical evacuation, search and rescue, humanitarian missions and aerial firefighting.

It can carry a payload of up to 26 tonnes and is designed to operate from temporary and unpaved runways, an important capability for military transport operations where conventional airport infrastructure may not always be available.

The aircraft can also perform aerial refuelling missions when configured as the KC-390, functioning both as a tanker and as a receiver.

Embraer has been expanding the C-390's international customer base as it competes in the global medium military transport market. For India, the company is pitching not only the aircraft but a wider manufacturing and support proposition built around domestic industrial participation.

India manufacturing push

The proposed Nagpur operation would represent a substantial localisation commitment if the partnership secures the IAF programme. Instead of limiting Indian participation to components or maintenance, the plan envisages final assembly and system integration in the country.

That could also create opportunities for Indian aerospace suppliers to enter a larger international production and support network as Embraer expands the C-390 programme globally.

For now, however, Nagpur remains the identified site for a potential facility rather than a confirmed production line. Mahindra and Embraer will continue preparations with the Centre, Maharashtra government and Indian aerospace companies while awaiting the government's decision on the IAF's Medium Transport Aircraft programme.