Airbus sees India as its fastest-growing mkt, backs indigenous helicopters, mfg, and $2bn sourcing push

Airbus has reaffirmed India’s position as its most important growth market globally, outlining plans to deepen localisation, expand helicopter manufacturing, strengthen the aerospace supply chain, and support India’s rapidly expanding airline fleet.

Airbus India and South Asia’s President and Managing Director Jürgen Westermeier, in an interaction with Bizz Buzz, said the company is committed to building a resilient Indian aviation ecosystem spanning civil aircraft, helicopters, manufacturing, engineering, and raw materials. Jürgen started his career in 1998 at BMW. He was promoted Head of Information Services in 2002.

In 2004, he was appointed Head of Strategy Purchasing, Motorcycles, followed by a nomination as Head of Purchasing Powertrain Motorcycles in 2007. In 2015, after several managerial positions within Strategy Purchasing, Quality Management and Supplier Network, he became Vice President, Cost Engineering.

In 2017, Jürgen was appointed Senior Vice President of Purchasing and Supplier Network in Asia. Jürgen graduated from the University of Karlsruhe where he obtained a degree in Industrial Engineering in 1998

How does Airbus view the helicopter market in India today?

The helicopter market in India is still at a very nascent stage, but it holds strong long-term potential. Airbus is fully prepared to support this segment with what we see as a truly Indian aircraft-the H125.

The H125 is already highly indigenised. Its aerostructure will be fully built in India, not just for domestic use but for global supply. From our perspective, this makes it an Indian aircraft in every meaningful sense.

In addition, we are also ready to support India with the military version of the H125, which is a highly capable platform. Both civil and military variants can be fully indigenised, and Airbus is prepared to support this ambition.

Airbus has partnered with Indian companies for aircraft assembly. Do you see sufficient demand for regional aircraft in India?

We are extremely pleased to have already established two final assembly lines in India—one for the H215 helicopter and another for the C295 transport aircraft. These programmes have been valuable learning experiences and have significantly strengthened India’s aerospace ecosystem.

Together, these assembly lines are expected to support up to 10,000 new aviation jobs, which is a substantial contribution to the sector.

As far as regional aviation is concerned, we see it as a strong opportunity for growth and for further democratisation of air travel. Within the Airbus portfolio, ATR aircraft are particularly well suited for regional connectivity.

There is an existing ecosystem to support these aircraft, their competitiveness is strong, and they align well with India’s regional connectivity goals.

We are ready to work with Indian partners and the government to support schemes such as UDAN with the right aircraft solutions.

Is Airbus considering setting up a commercial aircraft assembly line in India?

At this stage, our focus has been on helicopters and defence aircraft, where we have already established final assembly lines. These programmes are helping develop skills, suppliers, and industrial capabilities.

We continue to explore opportunities with Indian partners and policymakers, but any decision on commercial aircraft assembly would require careful consideration of scale, demand, and long-term sustainability.

Does Airbus believe India needs a Production-Linked Incentive (PLI) scheme for aerospace manufacturing?

Aircraft manufacturing is extremely capital-intensive. Unlike automotive manufacturing, where suppliers may not have visibility beyond a year, aerospace suppliers operate in a market with very long-term certainty. Airbus alone has a backlog of around 8,700 aircraft, offering decades of continuity.

However, entering aerospace manufacturing is complex. High entry barriers exist for a reason—there can be no compromise on safety or quality. This means suppliers must invest heavily upfront.

A PLI scheme would be highly appreciated and, in our view, essential to unlock India’s full aerospace manufacturing potential. Once suppliers are certified, growth can be exponential. We have seen this with Indian companies such as Mahindra and Dynamatic, which now supply not only Airbus but also other global OEMs.

Supporting suppliers through a PLI scheme would strengthen the entire ecosystem.

Airbus plans to increase sourcing from India to $2 billion by 2030. What does this involve?

Five years ago, Airbus had virtually no production supply chain in India. Today, we source complex components such as A220 doors—something that would have seemed unrealistic just a few years ago.

Our approach is holistic. We are assessing existing capabilities while also projecting what India can develop in the coming years. This includes collaboration with institutions such as Gati Shakti University to understand future skill availability and industrial capacity.

We are not only looking at components but also at raw materials. Establishing a local ecosystem for aerospace-grade raw materials is a priority. This will improve competitiveness, reduce lead times, and enhance delivery reliability by avoiding imports.

The $2 billion sourcing target does not necessarily require onboarding a large number of new suppliers. There is significant potential to scale volumes with existing partners while also selectively adding new capabilities.

What is Airbus’s aircraft order book for India?

Airbus currently has approximately 1,250 aircraft on order for India over the next 10 years. This translates to an average of around 120 aircraft deliveries per year, or more than two aircraft per week.

At peak, deliveries could reach around 150 aircraft in a single year. This makes India the fastest-growing market in Airbus’s global portfolio.

We are working closely with Indian airlines to support smooth entry into service and ensure these aircraft are operated efficiently and profitably.

Indian airlines have raised concerns about engine supply chain challenges. How serious is this issue?

It is important to clarify that there are no safety or airworthiness issues with the engines powering Airbus aircraft. These engines deliver excellent performance and offer up to 20% better fuel efficiency than previous generations.

What we are addressing are durability challenges, meaning certain parts need replacement sooner than initially expected. This has created temporary capacity constraints.

Airbus is working very closely with engine manufacturers to resolve this by increasing production capacity and strengthening MRO (maintenance, repair, and overhaul) support. Over 99% of our suppliers are fully aligned with our ramp-up plans.

This is not a safety issue, and any perception to the contrary is incorrect.

India’s fleet is projected to grow to 2,250 aircraft by the mid-2030s. Does Airbus expect to maintain its market share?

Yes. Airbus currently holds around 72% market share in India, and this share is reflected in our backlog as well. Since most deliveries over the next decade are already contracted, we expect this market share to remain stable.

The projected growth of around 1,500 additional aircraft aligns well with committed production slots and airline expansion plans. Demand, supply, and airline strategy are well aligned for the next 10 years.

Does the India–EU free trade framework benefit Airbus?

Aerospace has traditionally operated on a zero-for-zero duty structure, so direct tariff benefits are limited. However, the broader impact of a large free trade zone between India and Europe is far more significant.

This agreement will boost economic growth, expand the middle class, and increase affordability of air travel. From an aviation perspective, that means more passengers and stronger long-term demand.

How important is India in Airbus’s global strategy compared to other markets?

India is Airbus’s most important growth market globally. There is no other country growing at this pace.

India represents the largest country-level backlog for Airbus worldwide, exceeding even developed markets such as the US or Europe, where demand is largely replacement-driven. China is also a major growth market, but India’s growth rate is higher.

We are proud to support the democratisation of air travel in India.

How much of an Airbus aircraft is made in India today?

Every Airbus aircraft flying today contains Indian-made parts. The proportion is steadily increasing.

India now manufactures highly complex and safety-critical components such as A320 family doors, which are core aerostructure elements. This marks a significant step up the value chain.

Beyond components, India plays a crucial role in engineering and digital services. Critical systems—such as cockpit and avionics software for the A320 family and helicopter avionics—are developed and maintained from Airbus’s engineering centres in Bengaluru.

India is not just a manufacturing base; it is a global engineering hub for Airbus.