Embraer Sets High Bar for Making in India, FAL Contingent on 200 Domestic Orders

Brazilian aerospace giant Embraer has asked Indian airlines to place firm orders for more than 200 aircraft before it sets up a final assembly line (FAL) for commercial jets in India, according to a report by The Times of India.

If such large orders are not immediately possible, the company has reportedly proposed an alternative plan. It could start with a “completion centre,” where aircraft manufactured in Brazil would be flown to India for painting, installation of seats, and interior finishing before being delivered to customers.

The proposal comes after Embraer signed a memorandum of understanding with the Adani Group last month to set up a final assembly line for its regional jets.

Embraer President and CEO Francisco Gomes Neto said India’s fast-growing aviation market, expanding airport network, and the government’s UDAN scheme could create demand for at least 500 regional jets in the coming years.

He added that Embraer would need firm orders for 200 jets to make the assembly line commercially viable. If orders are received this year, the facility could begin production by 2028.

Embraer’s India Plan

To secure these orders, Neto is meeting key decision-makers at major Indian airlines, including Air India, owned by the Tata Group, and plans to meet IndiGo soon. Embraer intends to assemble its E175 regional jets in India. These aircraft, which seat 76 to 88 passengers, are designed for short- and medium-distance routes. Currently, eight E175 jets are operated by Star Air, while one is used by Reliance Industries. The Adani Group is exploring possible locations for the assembly plant, with Dholera in Gujarat emerging as a leading option.

Embraer is also working to develop a local supply chain. Neto said the company has been building partnerships with Indian suppliers for the past 18 months and recently signed an agreement with Hindalco to explore the production of aerospace-grade aluminium in India. Currently, Embraer has more than 15 supply chain partners in the country.

Adani-Embraer Tie UP

Under the Adani-Embraer MOU, the aircraft manufacturer will contribute its aircraft engineering and manufacturing expertise, while Adani will bring its growing aviation ecosystem, which includes airports, aerospace manufacturing, maintenance and repair services, and pilot training. Jeet Adani, Director of Adani Defence & Aerospace, said regional aviation is critical for economic growth and that government initiatives such as the UDAN scheme have increased the need for a strong domestic regional aviation ecosystem.

This development comes as the Adani Group prepares for major expansion in aviation. The group recently said it plans to invest ₹1 lakh crore in its airports business over the next five years and is considering options such as an IPO, demerger, or bringing in a strategic investor.

Overall, the group has announced plans to invest more than ₹6 lakh crore across aviation, clean energy, infrastructure, digital platforms, and advanced manufacturing, reflecting its focus on building technology-driven infrastructure for India’s future growth.