"The proposed facility would support the local assembly and industrialisation of the aircraft in India, subject to the Embraer C-390 Millennium being selected by the Government of India and an order being placed under the IAF’s MTA programme," the statement said.
Mahindra and Embraer said they are working with the Maharashtra government to complete the required processes and develop the industrial infrastructure needed for the programme.
"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," said Vinod Sahay, Member of the Group Executive Board at Mahindra Group.
"As we work with Embraer on the C-390 Millennium, we are preparing the industrial ecosystem required to support the programme at scale. Nagpur offers a compelling opportunity for such a capability, and we are very grateful to the Government of Maharashtra on expeditiously allotting the land in Nagpur and helping with the related requirements," he said.
Sahay added that the preparations remain subject to the selection of the C-390 Millennium and placement of the IAF order.
Building an aerospace ecosystem
The proposed Nagpur facility would be a state-of-the-art site focused on aircraft assembly, system integration, manufacturing engineering, and local supply-chain development.
If the programme is awarded to the partnership, Mahindra and Embraer plan to progressively bring Indian aerospace companies into the C-390 Millennium ecosystem. This would include manufacturing, aftermarket services, training, and lifecycle support.
"Embraer is pleased to deepen its partnership with Mahindra as we advance our preparations to bring the C-390 Millennium’s industrial capabilities to India," said Bosco da Costa Jr, President and CEO of Embraer Defense & Security.
"Identifying Nagpur as a potential location for an assembly facility is an important step in building a robust, long-term aerospace ecosystem in the country," he said, adding that the company valued the support of the Maharashtra government.
Mahindra-Embraer Partnership
Embraer and Mahindra signed a Strategic Cooperation Agreement in October 2025 to jointly advance the C-390 Millennium for the IAF's MTA programme. It built on an earlier memorandum of understanding signed in February 2024.
The agreement covers industrialisation, local manufacturing, assembly, supply-chain development and maintenance, repair and overhaul activities in India.
In February 2026, the companies also announced plans to establish a C-390 Millennium MRO capability in India, subject to the aircraft being selected for the MTA programme.
The C-390 Millennium is a multi-mission military transport aircraft designed for troop and cargo transport, airdrop operations, medical evacuation, search and rescue, firefighting, and humanitarian missions.
The aircraft can carry up to 26 tonnes of payload and is designed to operate from temporary or unpaved runways.