Airbus is set to significantly increase its annual sourcing of components and services from India, with plans to reach USD 2 billion by 2030. Guillaume Faury, CEO of Airbus, highlighted the importance of India leveraging its strengths rather than mimicking past approaches in the global aerospace industry.
Currently, Airbus sources approximately USD 1.4 billion worth of components and services annually from India, which is also one of the fastest-growing civil aviation markets worldwide. Faury emphasized that India is a key market for Airbus, and the challenge lies in supporting the rapid expansion of the aviation sector in the country.
Airbus’ order book includes over 1,300 aircraft slated for delivery to Indian airlines, with IndiGo alone having more than 900 planes on order, including wide-body A350 models. Notably, Air India has firm orders for 50 A350s, while IndiGo has placed orders for 30.
With around 700 Airbus aircraft currently operating in India, Faury underscored the country’s integration into the global aerospace sector. Airbus is expanding its sourcing efforts across various areas, including parts, sub-system manufacturing, airframes, and high-performance components.
Faury revealed that Airbus procures between USD 1.2 billion and USD 1.3 billion worth of components and services from India today and is on track to reach the USD 2 billion target before 2030. The company also has a strong presence in India, with over 3,600 employees and more than 15,000 jobs supported through its supply chain.
“India’s strength lies in engineering, IT, systems, and software,” Faury said, praising the country’s competitiveness and the growth of businesses in these sectors. He noted that Airbus is working with Indian companies like Dynamatic, Tatas, and Mahindra to optimize and re-engineer highly sophisticated systems.
In a recent milestone, Airbus awarded Dynamatic Technologies, based in Bengaluru, the contract to manufacture and assemble doors for its A220 Family aircraft. Additionally, Airbus has established a Final Assembly Line (FAL) for the C295 military transport aircraft in a joint venture with Tatas, and plans are underway to set up an FAL for the H125 helicopter in India.
When asked about the possibility of establishing a Final Assembly Line for civilian aircraft in India, Faury suggested that such a facility may be considered for future generations of aircraft, but not for the current models. He emphasized that India should focus on its core strengths rather than replicating what others have done.
Faury also highlighted the impressive growth of India’s aviation sector, noting the rapid expansion of airports and the significant pace of development. While the speed of growth presents challenges in terms of expertise, hiring, and training, Airbus remains committed to supporting the sector’s development in India. On the topic of supply chain constraints, Faury reassured that the situation is improving, helping to reduce delays in aircraft deliveries despite high demand.
