Airbus plans to buy $2 billion of parts from India every year

The decision to boost sourcing reflects India’s growing importance, with its domestic aviation market ranked the world’s third largest. Airbus in 2022 estimated India will need 2,210 new aircraft over the next 20 years.

Airbus SE plans to bolster its sourcing from India to $2 billion a year by 2030 — a jump of almost 43% from the current levels —  as it eyes growing sales in the South Asian nation’s booming aviation market.

“We have a target,” Remi Maillard, president and managing director of Airbus in India and South Asia, told reporters in New Delhi, adding that this quantum of sourcing will be achieved “well before 2030.” The Toulouse, France-based firm sourced $1.4 billion of products from India in 2024, an increase of 40% from the previous year, Maillard said. That compares with $500 million worth of procurement from India in 2019, he said.

The decision to boost sourcing reflects India’s growing importance, with its domestic aviation market ranked the world’s third largest. Airbus in 2022 estimated India will need 2,210 new aircraft over the next 20 years. Indian carriers have a pending order book of about 1,800 aircraft — one of the world’s largest order pipelines —with Airbus and rival Boeing Co.

The growth in sourcing from India is unprecedented despite the numerous approvals and procedures that are required, he said. Airbus is one of the biggest suppliers to IndiGo and Air India, two of the country’s largest carriers. Maillard, who was speaking at an event to announce a partnership with Mahindra Aerostructures Pvt., said the Indian company will manufacture fuselage for its single engine H130 helicopters.

Mahindra Aerostructures will start deliveries to Airbus from March 2027, the Indian company said in a statement.