Airbus to increase sourcing of aircraft parts from India

• Airbus is ramping up its sourcing of aircraft parts from India, doubling every five years, reflecting its commitment to growth in the country.

• In a strategic shift in 2023, Airbus began sourcing more hardware components than IT services from India, highlighting India’s key role in the global aerospace industry.

• With a robust order book of 8,600 aircraft, Airbus recognizes India as the world’s fastest-growing civil aviation market, with Indian airlines IndiGo and Air India ordering over 1,000 planes combined.

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Airbus bets big on India, plans to increase component sourcing

What’s the story

European aviation giant Airbus has announced plans to ramp up its component sourcing from India.

The company’s CEO, Guillaume Faury, announced the strategy at a press conference in New Delhi earlier today.

He said that Airbus has more than doubled its sourcing of components and services from India to €1 billion between 2019 and 2024.

CEO highlights India’s potential in aviation sector

Faury, who also happens to be the Chairman of the French Aerospace Industries Association (GIFAS), emphasized on the plethora of opportunities in India.

He said, “We will be continuing to grow (sourcing of components)… We will continue to double around every five years, that is in the next decade to come. It is a stable pace.”

This reiterates Airbus’s commitment to grow in India.

Airbus’s shift in procurement strategy

In 2023, Airbus made a major shift in its procurement strategy. For the first time, the company sourced more equipment for aircraft and helicopters than IT services from India.

This change shows a growing focus on hardware components along with software solutions.

Faury noted that companies under GIFAS procure goods worth $2 billion annually from India, further highlighting the country’s role as a key supplier for the global aerospace industry.

Airbus’s robust order book and production plans

Airbus has an order book of some 8,600 aircraft and expects to produce around 770 planes this year.

Indian airlines IndiGo and Air India have ordered more than 1,000 planes from Airbus combined.

Faury acknowledged India as the world’s fastest-growing civil aviation market, adding that airlines are in a fierce competition.

A high-level delegation from GIFAS, comprising over 60 companies and more than 100 representatives, is visiting India to strengthen partnerships and explore new business opportunities between the two nations.

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