Embraer in Talks to Set Up Manufacturing in India

Embraer-Plant-India
Image Courtesy: Embraer

Brazilian aerospace giant Embraer is exploring opportunities to establish a manufacturing unit in India, according to Arjan Meijer, CEO and president of Embraer’s commercial aviation division. Discussions are underway with the Indian government and major conglomerates, but the company’s success hinges on securing access to India’s burgeoning domestic market, which is currently dominated by Airbus and Boeing.

Meijer highlighted the importance of gaining market entry for Embraer’s jets, stating, “We have been clear for the past few years about our interest in partnering and bringing our products into the Indian market.” India, along with countries like China, Turkey, Japan, and Saudi Arabia, is a key focus for Embraer as it seeks to expand its global footprint.

India has been actively encouraging Airbus and Boeing to establish manufacturing facilities within the country. With major Indian carriers such as IndiGo, Air India, and Akasa Air collectively ordering over 1,000 aircraft, there is significant potential for new entrants. Prime Minister Narendra Modi has also indicated that it’s only a matter of time before aircraft are designed and produced in India.

Embraer, known for its ERJ family of regional jets, is positioning itself as a competitor to Airbus and Boeing, which currently dominate the market. The company’s latest model, the E195-E2, can accommodate up to 146 passengers and is part of its strategy to break the duopoly of the larger manufacturers.

Embraer’s approach includes proposing the establishment of a production line in India, which it believes will strengthen its position in the market. “While various factors are considered in partnership discussions, gaining market access for our E2 jets is a top priority,” Meijer noted.

Sources indicate that Embraer has presented its E175 aircraft to IndiGo, which is contemplating an order of around 100 smaller planes to enhance its network in regional areas. Meijer observed that the aviation sector has seen considerable upheaval recently, with some airlines ceasing operations while others like IndiGo and Air India are expanding.

Embraer’s E2 jets are designed to serve markets that may be less suited to larger aircraft like the Boeing 737 or Airbus A320, which can carry over 180 passengers. The E2’s smaller size and approximately 25% lower trip cost per seat make it a viable option for serving smaller or less densely populated destinations, offering airlines a chance to improve profitability through increased frequency and efficient seat management. Embraer’s strategic push into India reflects its ambition to capture a share of the Indian aviation market and challenge the dominance of Airbus and Boeing.