Airbus Deepens India Engagement with Raw Material Sourcing and Next-Generation Aircraft Development
European aerospace giant Airbus is significantly expanding its strategic partnership with India, unveiling ambitious plans to integrate the country more deeply into its global supply chain while leveraging Indian engineering talent for the development of next-generation single-aisle aircraft.
Strategic Expansion in Procurement and Supply Chain Integration
Airbus, which currently procures components worth $1.5 billion annually from India, has set an ambitious target to increase this figure to $2 billion before 2030. In a strategic shift, the company is now planning to move backward in the supply chain by sourcing critical raw materials directly from India.
"We are looking at the next level of engagement with India by integrating the country further into the supply chain and moving up the value chain," explained Jürgen Westermeier, President & Managing Director of Airbus India & South Asia. "So we are looking at raw material sourcing. It only makes sense to have the raw material chiseled into components here instead of moving the former out of the country."
Raw Material Focus: Aluminum, Steel, and Titanium
The company specifically identified three key materials for potential sourcing from India:
- Aluminum: Described as the "bread & butter of fuselage" for aircraft manufacturing
- Titanium: Lightweight and durable material used extensively in landing gear components
- Steel: Essential structural material for various aircraft parts
Westermeier emphasized that this backward integration into raw material sourcing could exponentially multiply the value of Airbus's procurement from India, creating a more comprehensive manufacturing ecosystem within the country.
Bengaluru Campus: Engineering Hub for Future Aviation
Airbus is establishing a major new facility in Bengaluru that will serve as a comprehensive aerospace hub. The 5,000-seater Airbus campus will house three specialized centers:
- An advanced engineering center focused on aircraft design and development
- A digital center for aviation technology innovation
- An innovation center for next-generation aerospace solutions
"India has an amazing talent pool," noted Westermeier, who previously served as Senior Vice President of Purchasing and played a key role in increasing Airbus's procurement from India from $500 million to the current $1.5 billion level. "We see them playing a key role in developing the next generation of single-aisle aircraft which are expected in the later half of the 2030s."
Next-Generation Aircraft Development
The next-generation single-aisle aircraft, expected to enter service in the second half of the next decade, will feature significant technological advancements. Engine manufacturers are developing larger diameter open fan architectures for improved efficiency, which will require substantial airframe redesigns.
These new engines, being much larger than current encased models, will necessitate wings to be mounted higher on the airframe and require comprehensive design changes from current configurations. Airbus India's engineering centers are expected to play a crucial role in this redesign process, contributing to what Westermeier describes as a complete design transformation for future aircraft.
Broader Economic Implications and India-EU Partnership
As President of the Federation of European Business in India, Westermeier also highlighted the broader economic context of Airbus's expanded engagement. He pointed to the potential India-EU Free Trade Agreement as a game-changer that could significantly boost investments and travel between the two economic powerhouses.
"The deal between two big democracies with a combined market of $24 trillion is going to be a game-changer in terms of investments," he stated. "The direct impact of this will be a huge uptick in travel."
This expanded Airbus strategy represents a significant evolution in India's role within global aerospace manufacturing, moving beyond component assembly to encompass raw material sourcing, advanced engineering, and participation in next-generation aircraft development.
