President and CEO Francisco Gomes Neto said Embraer was waiting for the Indian Air Force to issue a request for proposals for its Medium Transport Aircraft programme. The company would then submit a bid setting out its aircraft offer and localisation strategy.
“We believe we have the best product for that application,” Gomes Neto said during Embraer’s second-quarter 2026 earnings call. He described India as a major opportunity for the company to expand both sales and production outside Brazil.
Embraer has signed a memorandum of understanding with Mahindra to pursue the programme. Management did not provide details of the proposed division of work or the level of C-390 production that would be transferred to India.
The scale of the prospective order could provide the industrial base for an Indian assembly operation. Gomes Neto said the programme would allow Embraer to establish a second C-390 line outside Brazil and increase production to more than 10 aircraft a year.
Embraer expects to have capacity to build 10 C-390s annually in Brazil by 2030. The proposed Indian line would add capacity rather than replace the company’s existing production operation.
The plan reflects Embraer’s approach to large military aircraft competitions, where local industrial participation can accompany the aircraft offer. In India, the size of the requirement gives the company an opportunity to combine a major export campaign with a long-term manufacturing presence.
The timing remains dependent on the Indian procurement process. Embraer cannot submit its formal proposal until the Indian Air Force releases the request for proposals, Gomes Neto said.
India is one of two markets where Embraer is considering C-390 production outside Brazil. The company is also pursuing an undisclosed opportunity in the United States that, depending on the size of an eventual order, could support a third assembly line.
The capacity plans follow a series of international gains for the C-390. The United Arab Emirates ordered 10 aircraft with options for another 10 during the second quarter, marking the programme’s first selection in the Middle East and its largest international order to date.
Colombia subsequently became the 13th country to select the KC-390. Gomes Neto said geopolitical conditions were accelerating defence procurement campaigns and supporting demand in the military transport market.
Embraer’s Defence and Security backlog rose 42% from a year earlier, while its book-to-bill ratio reached 2.6 over the preceding 12 months. The division generated $304 million in second-quarter revenue, an increase of 38%, supported by stronger KC-390 revenue recognition.
India could become the next major step in the programme’s international expansion, but the opportunity remains at the pre-tender stage. Any decision on local assembly will depend on Embraer securing an order large enough to justify the investment.
