India’s Mahindra Group and its Brazilian partner Embraer have identified Nagpur as the location for setting up a ‘Final Assembly Line’ to produce the Embraer C-390 Millennium aircraft in India.The two companies are jointly bidding for the Indian Air Force’s (IAF) Medium Transport Aircraft (MTA) programme. US-based Lockheed Martin, which has partnered with the Tata Group, is the other bidder.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.“As part of their ongoing preparations, Mahindra and Embraer are working with the Government of Maharashtra and have identified Nagpur for a potential Final Assembly Line for Embraer C-390 Millennium aircraft production in India,” a company statement said.The statement added that the two companies were working closely with the Maharashtra Government to complete the associated processes. The industrial infrastructure could be developed expeditiously if the programme was awarded to the Mahindra-Embraer partnership.The proposed Nagpur facility would be a state-of-the-art facility in India, bringing know-how in aircraft assembly, system integration, manufacturing engineering and local supply chain development, among other areas, to the country.Subject to the programme being awarded, the partnership intends to progressively integrate Indian aerospace companies into the C-390 Millennium ecosystem to deliver manufacturing, aftermarket services, training and lifecycle support, in line with the Government of India’s Make in India and Atmanirbhar Bharat objectives.Embraer and Mahindra entered into a strategic cooperation agreement in October 2025 to jointly advance the C-390 Millennium for the IAF’s MTA programme, building on their earlier MoU signed in February 2024. The agreement envisages collaboration in industrialisation, local manufacturing, assembly, supply chain development and maintenance, repair and overhaul (MRO) activities in India.In February 2026, the companies also announced plans to work towards establishing an MRO capability for the C-390 Millennium in India, subject to the aircraft being selected under the MTA programme.The C-390 Millennium is a multi-mission military transport aircraft designed to perform a range of missions, including troop and cargo transport, airdrop operations, medical evacuation, search and rescue, firefighting and humanitarian missions. The aircraft has a payload capacity of up to 26 tonnes and is designed to operate from temporary or unpaved runways.Vinod Sahay, Member of the Group Executive Board, Mahindra Group, said, “Mahindra is committed to building a globally competitive aerospace ecosystem in India and creating meaningful manufacturing and technology capabilities that contribute to the country’s Atmanirbhar Bharat ambitions.”“We are preparing the industrial ecosystem required to support the programme at scale. Nagpur offers a compelling opportunity for such a capability,” Sahay said.Bosco da Costa Jr, President and CEO, Embraer Defense & Security, said, “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.”