ATR Eyes India for Aircraft Manufacturing Expansion
ATR, the Franco-Italian turboprop aircraft manufacturer, is exploring the possibility of establishing a manufacturing facility in India. Jean-Pierre Clercin, Head of Commercial for Asia Pacific at ATR, said, “Nothing is off the table, if it makes business and industrial sense.” The company currently manufactures its aircraft in Toulouse, France, and Naples, Italy. However, India’s emerging market potential has prompted ATR to consider a deeper industrial footprint in the country.
India is already one of the largest markets for ATR in the Asia-Pacific region, with about 70 aircraft currently operating in the country. The manufacturer estimates that India could require around 200 new turboprop planes over the next decade. This forecast is largely fueled by the Indian government’s UDAN (Ude Desh ka Aam Nagrik) regional connectivity scheme, which has made smaller towns and tier-2 cities more accessible by air.
The surge in regional air traffic and increasing interest from regional airlines have created fertile ground for aircraft manufacturers like ATR to consider local production as a viable business strategy.
Setting up manufacturing in India would align well with the Modi government’s flagship ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. Both programs aim to boost domestic manufacturing, reduce import dependency, and build indigenous capabilities in critical sectors including aerospace.
“If the conditions are right, and there is enough market demand and ecosystem support, we are open to the idea,” Clercin added, signaling a willingness to work within India’s policy and industrial frameworks.
Industry observers note that India offers significant advantages including a skilled workforce, cost-effective supply chains, and supportive government policies. However, any final decision by ATR would depend on several factors such as ease of doing business, tax structures, vendor ecosystem, and infrastructure availability.
A move into India would not only allow ATR to meet local demand more efficiently but also serve as a springboard to export aircraft to other growing markets in Asia and Africa. The development also comes amid increasing interest from global aerospace companies to establish joint ventures or wholly-owned subsidiaries in India to tap into its growing aviation market.
As discussions progress, stakeholders across the aviation and manufacturing sectors are closely watching ATR’s next steps, which could mark a transformative moment in India’s aviation industry.
