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Embraer Aims to Expand in India, Discusses Aviation and Defence With IndiGo, Air India

Written by: Team Angel OneUpdated on: Jun 4, 2025, 3:33 PM IST
Embraer targets aviation and defence growth in India, with talks underway with IndiGo and Air India, and plans for local hiring, procurement, and MRO setup.
Embraer Aims to Expand in India, Discusses Aviation and Defence With IndiGo, Air India
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Embraer, the renowned Brazilian aircraft manufacturer, is charting a stronger course in India’s aviation and defence sectors. With talks currently underway with major carriers such as IndiGo and Air India for its E2 aircraft, the company is actively seeking to deepen its engagement in the Indian market. The E2 jet, with a seating capacity of up to 146 passengers, is central to Embraer’s commercial push in the country.

Embraer Expansion Plans in India 

In a strategic move, Embraer has established a wholly owned Indian subsidiary headquartered in New Delhi. The subsidiary is intended to support Embraer’s growing ambitions across commercial, business, and defence aviation in India. The company is also building a local team covering functions such as government relations, procurement, communications, engineering, sales, and marketing.

This step aligns with its broader vision of tapping into India's extensive aviation ecosystem and supply chain potential.

Discussion with IndiGo and Air India for E2 Aircraft

Discussions with IndiGo and Air India centre on Embraer’s E2 series aircraft. These next-generation jets are positioned as a versatile solution for regional connectivity, which is a priority in India’s expanding aviation landscape. As one of the world’s fastest-growing aviation markets, India presents significant opportunities for aircraft that offer both efficiency and flexibility.

Currently, Embraer has nearly 50 aircraft operating in India across the commercial, defence, and business sectors.

Read More: India Climbs to 3rd-Largest Aviation Market Globally

Exploring Opportunities in Indian Supply Chains

To strengthen its presence further, Embraer is planning to create a dedicated procurement team in India. This team will focus on integrating Indian suppliers into Embraer’s global supply chain, fostering greater local engagement. The company’s Indian operations are expected to benefit from the skilled workforce and manufacturing capabilities available across the country.

Interest in Civilian MRO and Future Plans

Embraer is also evaluating the feasibility of setting up a Maintenance, Repair, and Overhaul facility in India for civilian aircraft. The final decision will depend on the scale of aircraft orders received in the coming months. This potential move would contribute to India’s vision of becoming a global hub for aircraft servicing.

Expanding Role in Defence with Mahindra Collaboration

In the defence segment, Embraer continues to expand its footprint. The company has signed a Memorandum of Understanding with Mahindra Defence Systems to jointly pursue the Indian Air Force’s Medium Transport Aircraft programme. Embraer’s aircraft are already in use by the Indian Air Force for VIP transport and surveillance missions.

Embraer’s CEO Highlights India’s Global Aviation Position

Mr Francisco Gomes Neto, the Chief Executive Officer of Embraer, emphasised India’s role as the 3rd-largest aviation market globally. He expressed optimism regarding the growth of bilateral trade between India and Brazil and highlighted both countries’ long-standing diplomatic relationship through forums such as BRICS.

Conclusion

Embraer’s latest efforts in India reflect its commitment to long-term collaboration. With ongoing talks with IndiGo and Air India, a new local subsidiary, and plans to expand both its civil and defence offerings, Embraer is positioning itself as a key player in India’s evolving aviation sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.

Published on: Jun 4, 2025, 3:33 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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