European major Airbus has shortlisted eight sites in India for setting up its final assembly line for H125 helicopters and the ground-breaking ceremony for the facility is expected later this year.

 The facility, which will be the fourth Final Assembly Line (FAL) for the single engine H125, will initially produce up to 10 helicopters annually and the capacity will be ramped up depending on the market demand, Airbus officials said.

"India is the market of the future for helicopters... At present, the market is extremely embryonic, it is very small compared to what the potential could be," Olivier Michalon, Executive Vice President Global Business of Airbus Helicopters, said.

The ground breaking ceremony for the FAL is expected in October or November this year and the facility will be operational in 2026 and the delivery is anticipated to start towards the end of 2026.

"We have identified eight sites which we are currently assessing. We are still in the final assessment stage. We should be in a position to announce it shortly.

"We want to be attractive and in an ecosystem that is best suited for industrial activities, logistics, employees and of course, regulations," Michalon said at a briefing at Marignane earlier this week.

Marignane is the headquarters of Airbus Helicopters.

 For Airbus, H125 is the most-sold helicopter in India as well as the South Asia region.

Airbus has projected the demand for H125 helicopters in India and neighbouring countries at 500 over the next 20 years.

"We are targeting 10 helicopters per year and as the demand picks up we can ramp up," Head of Airbus Helicopters in India and South Asia Sunny Guglani said at the briefing.

Michalon stressed that 10 might not sound like a lot and it could be 20, 30, or 50 in some years,

depending on the market demand.