Embraer Offers C-390M Assembly Line in India—But Only with Big IAF Order

Brazil’s aerospace giant Embraer has come forward with a game-changing offer for India’s defence sector. The company has proposed to set up a full-scale final assembly line for its C-390 Millennium military transport aircraft in India—on one key condition: the Indian Air Force (IAF) must commit to a significant order of at least 40 to 80 aircraft.

This proposal comes at a time when the IAF is searching for a modern replacement for its ageing Soviet-era Antonov An-32 fleet under the Medium Transport Aircraft (MTA) program. Embraer’s offer perfectly aligns with the Indian government's 'Make in India' initiative, aiming not just to equip the Indian Air Force with modern aircraft but also to turn the country into a regional hub for manufacturing and exporting the C-390 to friendly nations across Asia.

A Strategic Deal Hinged on Scale

Raul Villaron, Embraer’s Head of Asia-Pacific for Commercial Aviation, made it clear that the proposed Indian facility would only be economically viable if a large order is placed. A deal involving 40 to 80 aircraft, he explained, would justify the significant investment needed to establish a domestic assembly line and associated infrastructure.

Such a production base in India could potentially serve export markets like Vietnam, Indonesia, and the Philippines, all of which are seeking to modernize their airlift capabilities.

To support this vision, Embraer signed a Memorandum of Understanding (MoU) in February 2024 with Mahindra Defence Systems. This partnership would focus on developing a local supply chain and production ecosystem, ensuring that a substantial portion of the aircraft's systems and components are built in India—strengthening self-reliance in the defence sector.

Drawing Inspiration from the Tata-Airbus Model

Embraer’s proposal draws inspiration from the ongoing Tata-Airbus project, which is already producing C-295 aircraft in Vadodara. This partnership has become a benchmark for successful foreign-Indian aerospace collaboration, and Embraer aims to replicate a similar model with its C-390 program.

The C-390 Millennium: A Workhorse in the Sky

The C-390 Millennium is a versatile, next-generation military transport aircraft designed to perform a broad spectrum of missions:

• Payload Capacity: Up to 26 tonnes, which includes heavy vehicles, helicopters, or 80 fully-equipped troops.

• Speed & Range: It cruises at 870 km/h and offers a range of 2,820 km with a full 23-tonne payload.

• Multirole Capability: The aircraft is configurable for missions such as medical evacuation, aerial refuelling, search and rescue, and cargo or paratroop drops.

Since joining the Brazilian Air Force in 2019, the C-390 has clocked over 11,500 flight hours. It has an operational availability rate of 80% and a mission completion success rate of 99%. Its performance in real-world missions—from delivering humanitarian aid after the 2020 Beirut blast to moving critical medical supplies during COVID-19—has proven its durability and adaptability.

Tough Competition for IAF’s Medium Transport Role

Despite its capabilities, the C-390 is not the only contender for India’s MTA program. Other prominent options include:

• Lockheed Martin C-130J Super Hercules: A proven aircraft already in IAF service with 12 units. Lockheed Martin has also offered to set up a local production line with an Indian partner.

• Airbus A400M Atlas: Offers greater payload capacity of 37 tonnes but comes with a much higher price tag, making it potentially less attractive for India’s budget-conscious defence planners.

Still, industry watchers believe the C-390 has a compelling edge. Its lower lifecycle costs, high operational availability, and the IAF’s existing familiarity with Embraer platforms—such as the ERJ-145 used for Netra AEW&CS and the Legacy 600 jets used for VIP transport—give it a strategic advantage.

What’s Next?

The final decision on the IAF’s Medium Transport Aircraft deal is expected by 2026 or 2027. If Embraer secures the contract, India could become not only the largest global operator of the C-390 Millennium but also its production and export hub in Asia. That would mark a significant leap in India’s aerospace manufacturing capability—boosting jobs, technology transfer, and global relevance in the military aviation space.