Lockheed Martin promises India production boost in $10.5bn military aircraft bid

Lockheed Martin is offering to significantly expand its aerospace manufacturing footprint in India if it secures a $10.5 billion military contract to supply the country's armed forces with 60 new medium transport aircraft.

Building on an established relationship, the US defence giant plans to work with its local partner, Tata Advanced Systems Limited (TASL), to manufacture the bulk of the planes within India. Under the proposal, 12 of the aircraft would be delivered in "flyaway" condition from the US, while the remaining 48 would be built locally.

Lockheed Martin already has a joint venture with Tata in Hyderabad—Tata Lockheed Martin Aerostructures—which produces tail assemblies and other components for the C-130J Super Hercules for the company's global assembly line. Dan Tenney, Lockheed’s head of global business development, said this existing facility would expand directly if their bid succeeds. "We have a long partnership with Tata that produces components and empennages of the C-130J aircraft. It is a very robust capability that will be expanded in our current bid," Tenney said, adding that the expansion would focus on domestic production capabilities.

The race to modernise India's transport fleet

The contest is part of a major modernisation effort by the Indian Air Force, which wants to replace its ageing Soviet-era Antonov An-32 planes. India issued the formal tender in August, asking for transport aircraft in the 18-to-30-tonne payload class capable of operating from high-altitude and semi-prepared airfields.

Five Indian firms are competing for the programme, each expected to tie up with international aerospace manufacturers. While Tata has joined forces with Lockheed, the Mahindra Group has partnered with Brazil's Embraer, which is pitching its C-390 Millennium.

Lockheed is fielding its C-130J-30 Super Hercules, which has a payload capacity of 19 to 22 tonnes, while Embraer's C-390 can carry up to 26 tonnes. Airbus initially responded to the requirement with its larger A400M Atlas but is no longer in the main running.

A unified fleet proposal

Lockheed is also leveraging its history with the Indian Air Force to win the contract. India already operates 12 C-130J aircraft, which have flown more than 58,000 hours, including difficult high-altitude operations in Ladakh and humanitarian evacuation missions in Nepal and Sudan.

As part of its pitch, Lockheed has offered to upgrade these 12 older planes to match the new configuration, which would give India a unified fleet of 72 C-130Js. It is not yet clear how the Indian government will evaluate the competing bids, but the promise of substantial local production aligns closely with the country's domestic manufacturing goals.