In a landmark move set to redefine India's aerospace landscape, Sarla Aviation has announced a monumental investment of ₹1,300 crore to establish a sprawling 500-acre integrated aerospace facility in Andhra Pradesh. This ambitious project, officially formalized through a Memorandum of Understanding (MoU) with the state government, will see the creation of the world's largest manufacturing campus for electric Vertical Takeoff and Landing (eVTOL) aircraft.[1] The facility, dubbed the "Sky Factory," will be located in the Anantapur district and is poised to become a nerve center for the future of urban air mobility (UAM) in India and globally.[2] The investment signals a transformative leap for the nation's manufacturing capabilities, positioning Andhra Pradesh at the forefront of a new era in sustainable aviation and creating a significant ecosystem for the application of artificial intelligence in aerospace technology. The formal MoU was handed over by the Chief Minister of Andhra Pradesh, N. Chandrababu Naidu, in the presence of the Union Minister of Civil Aviation, Ram Mohan Naidu, underscoring the project's national importance.[1][3][4]

The scope of the "Sky Factory" is comprehensive, designed to create a fully integrated ecosystem for the entire lifecycle of next-generation electric aircraft.[1] With the capacity to produce up to 1,000 eVTOL aircraft annually, the giga-campus will encompass everything from initial design, research, and development to manufacturing, testing, certification, pilot training, and maintenance operations.[1][2] The facility will feature state-of-the-art infrastructure, including advanced production lines for composites, powertrains, flight control computers, and avionics.[5] Furthermore, it will house India's largest wind tunnel, a dedicated two-kilometer runway, and specialized VTOL testing pads, ensuring that the entire development and production process can be contained within a single campus for the first time in India.[1][2] This integrated approach is expected to create thousands of high-skill jobs and significantly boost the local and national aerospace supply chain by fostering participation from Micro, Small, and Medium Enterprises (MSMEs).[6] Sarla Aviation's vision aligns with the Indian government's "Viksit Bharat 2047" agenda for national development and Andhra Pradesh's "Swarna Andhra 2047" roadmap for a future-ready state.[4]

At the heart of this futuristic project lies the critical role of artificial intelligence, which is poised to be a fundamental enabler of Sarla Aviation's operations and the broader UAM ecosystem. While the company's initial six-seater eVTOL, the 'Shunya', will be piloted, the underlying fly-by-wire technology is a stepping stone towards full autonomy.[7] AI is integral to the future of eVTOLs, powering autonomous navigation, collision avoidance, and real-time decision-making in complex urban airspaces.[7] As Sarla Aviation moves towards its long-term vision of making flying taxis a mode of mass transportation by 2035, the integration of AI will be paramount.[2] The development of AI-driven Unmanned Traffic Management (UTM) systems will be essential for orchestrating the movement of thousands of eVTOLs, optimizing flight corridors, managing vertiport takeoffs and landings, and ensuring safety in crowded skies.[1] This investment by Sarla Aviation will, therefore, act as a major catalyst for AI development in India, driving innovation in autonomous systems, machine learning for predictive maintenance, and sophisticated algorithms for airspace management.[1][8]

The establishment of the "Sky Factory" is a significant pillar of Andhra Pradesh's strategy to become a premier global hub for aerospace and defense manufacturing. The state's Aerospace and Defence Policy 4.0 (2025–2030) aims to attract investments between ₹50,000 crore and ₹1 lakh crore by fostering an ecosystem centered on advanced technology and innovation.[9][8][10][11] The policy outlines the development of specialized manufacturing clusters across the state, such as drone technologies in Kurnool-Orvakal and aerospace electronics in Lepakshi-Madakasira.[9][11] Sarla Aviation's giga-campus fits perfectly within this vision, promising to anchor a high-value manufacturing ecosystem in the state.[6] Chief Minister N. Chandrababu Naidu has emphasized the state's focus on becoming a nucleus for innovation, not just for national security but also for commercial applications that improve daily life.[11] The government is actively working with Sarla Aviation to co-develop certification frameworks and the necessary infrastructure for UAM, including dedicated air corridors and a network of vertiports.[4][6] These collaborative efforts are paving the way for the launch of commercial air-taxi services across major South Indian cities, with a target of 2029 for initial operations.[4][6]

In conclusion, Sarla Aviation's ₹1,300 crore investment in Andhra Pradesh is more than just the construction of a factory; it is the foundation of a new industrial chapter for India. By building the world's largest eVTOL manufacturing campus, the company is not only addressing the urgent need for innovative solutions to urban congestion but is also positioning India as a leader in sustainable, next-generation aviation.[6][12] This venture will significantly reduce India's reliance on imported aviation technologies and propel the nation from being a technology consumer to a world-class producer.[6] The project's deep-seated reliance on artificial intelligence for everything from future autonomous flight to the complex orchestration of urban air traffic ensures that its impact will resonate far beyond the aerospace sector. It promises to accelerate AI research and development, create a new generation of high-tech jobs, and build a robust domestic supply chain, heralding a future where clean, efficient, and intelligent aerial mobility is an everyday reality for millions.