Tata Elxsi, Sarla Aviation partner to develop India’s first homegrown eVTOL

Tata Elxsi Limited and Bengaluru-based startup Sarla Aviation have announced the signing of a Memorandum of Understanding (MoU) to jointly develop Shunya, an electric vertical take-off and landing (eVTOL) aircraft designed to carry six passengers plus a pilot. According to a statement released on Tuesday, the partnership marks a significant step forward in the development of advanced air mobility solutions tailored for the Indian market.

The collaboration will harness Tata Elxsi’s expertise in critical engineering domains, including avionics, flight control systems, software integration, and the stringent processes of testing, verification, validation, and certification. Sarla Aviation will lead the design, development, and type certification of the Shunya platform. Together, the companies may also enhance the project with additional work in sensor fusion-based navigation software, sophisticated structural design, and support for airworthiness tests.

Shunya is being positioned as a new solution for urban and regional air travel, with the capacity for flight operations exceeding 300 kilometres. The aircraft will combine the vertical take-off and landing capabilities needed for congested city centers with the cruise efficiency of a fixed-wing design, aiming to operate independently of traditional runways. The companies have set a target of 18 to 24 months for Shunya’s first flight, after which formal certification activities are expected to commence.

The MoU was signed in the presence of Manoj Raghavan, CEO and Managing Director of Tata Elxsi, along with Sarla Aviation’s co-founders Adrian Schmidt and Rakesh Gaonkar. Schmidt and Gaonkar previously worked together at German eVTOL company Lilium before establishing Sarla Aviation in 2023. The startup is focused on bridging gaps between Indian cities and regions through faster, more flexible air travel, while also investing in the infrastructure and ecosystem required to scale this mode of transport.

Both companies indicated that the partnership could eventually expand beyond passenger transport to include applications in logistics, air ambulance services, and the defense sector. These potential future avenues reflect broader industry expectations for eVTOL platforms to transform not just urban mobility, but also critical supply chains and emergency response capabilities.

Tata Elxsi shares closed at ₹3,638 on the NSE on Tuesday, a gain of 1.66 percent from the previous session. Despite the day’s uptick, the stock has declined roughly 32 percent over the past year, and the company’s current market capitalisation stands at approximately ₹22,665 crore.