Brazil’s Embraer In Talks With IndiGo, Air India for Expansion in Indian Market

Brazilian regional jet manufacturer Embraer has established a fully owned Indian subsidiary in AeroCity, New Delhi, as part of its plans to expand its presence in the country. The company is already in talks with two of India’s major airlines—IndiGo and Air India—regarding the potential sale of its E-2 aircraft, which can seat up to 146 passengers.

The Brazilian aerospace and defence company manufactures smaller, short-haul regional jets compared to its global rivals Boeing and Airbus. With seating capacity ranging from 120 to 146 passengers, Embraer's E2 jets fall into the regional jet category. In contrast, narrow-body aircraft like the Airbus A320 or Boeing 737 typically carry 150–186 passengers. While the E2 has a similar wingspan, its range is shorter—approximately 4,800 km compared to 6,300–6,500 km for its larger counterparts.

As Boeing and Airbus continue working through backlogs of pending orders from Indian airlines, Embraer’s top executives are currently in India for the annual general meeting of the International Air Transport Association (IATA).

“India is the third-largest aviation market globally… we see many opportunities for our various business units in this market—commercial jets, business jets, military aircraft, and eVTOLs. That’s why we want to deepen our collaboration with the country, and setting up a subsidiary here is a major step,” CEO Francisco Gomes Neto told news agency PTI.

Currently, around 50 Embraer aircraft across 11 different types are operating in India, serving commercial aviation, defence, and business aviation segments.

“India is a key market for Embraer, and this expansion demonstrates our unwavering commitment to the country. We are excited to deepen our collaboration with the Indian aerospace and defence industry, leveraging our expertise and technology to contribute to the nation’s growth and Make in India efforts,” Neto said in a statement on May 30.

When asked whether Embraer plans to establish a Maintenance, Repair and Overhaul (MRO) facility for civilian aircraft in India, Neto said that would depend on future aircraft orders.

Raul Villaron, SVP of Sales & Marketing and Head of Asia Pacific for Embraer Commercial Aviation, told the news agency that the company is currently in discussions with IndiGo and Air India.

He explained that many of India’s unserved routes are either too small for narrow-body jets or too long for turboprops, making the E2 series an ideal fit. “The E2 is right in the sweet spot,” Villaron said.

The E195-E2 can accommodate up to 146 passengers, depending on configuration.

Villaron also noted that Embraer had previously found it difficult to enter the Indian commercial market because its earlier E1 jets had a better trip cost but lacked competitive seat cost. “Now, with the E2, we have a very competitive seat cost, which makes us more viable in the Indian market,” he said.

Embraer already has a significant footprint in India’s defence sector. Last year, Embraer Defense & Security signed a Memorandum of Understanding (MoU) with Mahindra Defence Systems to explore a joint bid for the Indian Air Force’s Medium Transport Aircraft (MTA) programme using the C-390 Millennium.

Embraer aircraft currently in military service in India include the Legacy 600, used by the Indian Air Force and the Border Security Force for VIP and government transport, and the Netra AEW&C aircraft, based on the ERJ145 platform and operated by the IAF.

On the business jet front, Neto said there could be more opportunities in India with a few regulatory changes. He also pointed to growing global interest in electric Vertical Take-Off and Landing (eVTOL) aircraft, which are increasingly seen as a promising solution for urban mobility.