Airbus and Tata are joining forces to manufacture India’s first H125 helicopter, which is set to roll out by 2026. This partnership aligns with India’s Atmanirbhar Bharat initiative and reflects Airbus’s commitment to investing in the Indian aerospace market despite regulatory challenges.
Final Assembly Line Setup
Airbus, in collaboration with Tata, plans to establish a Final Assembly Line (FAL) for the H-125 helicopters in India by winter. Eight potential sites have been identified for the assembly line, with a decision on the location expected soon. The initial production capacity will be 10 helicopters per year, with the potential to scale up to 50 helicopters annually in subsequent years.
Market Potential
India is projected to become a significant market for helicopters, with Airbus estimating a demand of up to 500 H-125 units in India and neighboring countries. The company views India as a future leader in the commercial helicopter sector, comparable to the United States in market importance.
Regulatory Challenges
Airbus acknowledges the restrictive nature of current Indian market regulations but remains optimistic that they will become more flexible over time. The company is committed to investing in India and navigating regulatory hurdles to achieve its market ambitions.
Current Market and Production Insights
Over 7,000 H-125 helicopters are operational globally, including in the competitive US market. Airbus aims to replicate the success of its A-320 commercial aircraft in the helicopter market. Currently, there are 350 civil and para-public helicopters across India and neighboring countries, with fewer than 250 in active service in India.
Airbus’s Market Share and Ecosystem Development
Airbus holds a 40% market share in the commercial helicopter sector, with 140 of the 350 helicopters in the region being Airbus models. The company is also focusing on building a robust ecosystem for maintenance, repair, and overhaul (MRO) services, having partnered with Indamer to enhance helicopter MRO capabilities in India.
Defense and Engineering Contributions
In the defense sector, Airbus is notable for its contributions to the C295 program. The company is also investing in India’s digital and engineering sectors through the Airbus India Engineering Centre and the Digital Centre in Bengaluru, which support global operations and innovation.