India-based Adani Aerospace is claimed to have signed a memorandum of understanding (MoU) with Brazilian manufacturer Embraer regarding the establishment of a final assembly line in the country. Under the proposed cooperation, the assembly of the E175, E190-E2, and E195-E2 models in India is on the agenda, although Embraer has not yet issued an official confirmation of the agreement.
Details of the project are expected to be announced at an aviation exhibition to be held in Hyderabad at the end of January. While the location of the assembly facility and the scale of investment have not yet been clarified, it is reported that the Indian government is working on tax and financial incentives for airlines that prefer locally assembled aircraft. These incentives are planned to be gradually reduced as order volumes increase.
The commissioning of new airports in India’s second- and third-tier cities, along with the UDAN program, is said to be driving increased demand for aircraft with fewer than 150 seats.
