In a significant development for the Indian aviation sector, ATR, the world’s leading manufacturer of turboprop aircraft, has indicated a strong willingness to establish a final assembly line in India.
The Franco-Italian aerospace giant is exploring the local production of its flagship ATR 72-600 aircraft to cater to the country’s rapidly expanding regional market.
This strategic consideration comes as demand for short-haul connectivity surges across India, driven largely by the government’s Regional Connectivity Scheme, known as UDAN (Ude Desh ka Aam Naagrik).
The scheme, which subsidises flights to unserved and underserved airports, has created a robust market for efficient regional aircraft. ATR currently dominates this segment, with its aircraft forming the backbone of regional fleets for airlines such as IndiGo and Alliance Air.
"Make in India" on the Horizon
According to sources familiar with the matter, ATR’s decision to manufacture in India depends on a viable business case. The company is a joint venture between European aerospace heavyweights Airbus and Leonardo, both of which already have significant supply chain footprints in India.Jean-Pierre Clercin, ATR’s Senior Vice President for Asia Pacific and China, confirmed the company’s open stance in a recent interview. “Nothing is off the table, if it makes sense, from an industrial and business perspective,” Clercin stated. He noted that the existing industrial presence of ATR’s shareholders in India offers a strong foundation for potential local manufacturing.
The Ideal Regional Workhorse
The ATR 72-600 is widely regarded as the most suitable aircraft for India’s regional network. Capable of carrying up to 78 passengers, the aircraft is powered by Pratt & Whitney Canada PW127 engines, known for their reliability in hot and high environments.Crucially, the turboprop design offers significant economic advantages over regional jets. It consumes up to 40% less fuel and emits fewer carbon emissions, making it highly cost-effective for short routes (typically under 500 kilometres).
With a range of approximately 750 nautical miles, it is perfectly designed to connect Tier-2 and Tier-3 cities with major metropolitan hubs, operating efficiently from the shorter runways often found in India’s hinterlands.
Rising Competition from HAL
While ATR enjoys a dominant position today, the competitive landscape is evolving.In October 2025, Hindustan Aeronautics Limited (HAL) signed a landmark agreement with Russia’s United Aircraft Corporation (UAC) to manufacture the Sukhoi Superjet 100 (SJ-100) in India. This deal grants HAL exclusive rights to assemble the 75-100 seat regional jet, which has been adapted with Western engines to bypass sanctions.
Industry experts note that while the Sukhoi jet offers higher speeds and greater passenger comfort, it comes with higher fuel consumption compared to turboprops like the ATR. Consequently, ATR remains the more economical choice for the short, price-sensitive routes prioritised under the UDAN scheme.
Future Outlook
ATR projects that India will become its largest global market by 2030, with a potential demand for 200 to 300 new turboprop aircraft.If the plan for a local production line materialises, it would not only reduce logistics costs and import duties but also align with Prime Minister Narendra Modi’s "Make in India" initiative, fostering technology transfer and creating thousands of high-skilled jobs in the aerospace sector.
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