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Monday, 2 June 2025

Should Dassault Aviation revisit “Made in India” business strategy?

Eric Trappier, CEO of Dassault Aviation has full of ‘must do tasks’ on his table. The uppermost in his mind and that of the Dassault board of directors is how to proceed with the “Made in India” business strategy. This is the first time in decades Rafale fighters were downed in an air battle.

The recent air to air fight between India & Pakistan brought the surprising news of the downing of Rafale jetfighters numbering 3 by little known Chinese J 10 jet fighters manufactured by Chengdu Aircraft Industry Group of China. These fighters are used only in China and Pakistan, unlike in the case of Rafale which is the mainstay of France and host of other nations including Egypt, India, Indonesia, Qatar and UAE. The credence of earlier Mirage Plane is superimposed on Rafale.

Dassault Aviation, is capable of designing, manufacturing supporting and upgrading of Rafale series where the present version of Rafale 4 is being marketed throughout the globe. In 2024 Dassault turned out 21 such planes out of which 7 were exported. An improved version, Rafale 5 is on the design table and would fly in the sky by 2030. By every standard the order book for Rafale is fabulous. The year 2024 recorded 30 units and the company estimates additional 40 would be booked for 202

Eric went on the marketing blitz and negotiated with India over the biz strategy codenamed “Made in India” with a two pronged hook. Whereas Dassault is responsible for the techno & source code, Indian collaborator would be responsible for assembly & maintenance. By this scheme, Dassault focuses on three purposes goals:

a) Markets that are large in terms of asset allocation to air force in their overall defence expenditure

b) Countries that cannot afford or approach for jet fighters such as F 35 and Eurofighter Typhoon

c) India is a convenient point not only for supply and service for the Indian air force but for supplying panes to nearby markets such as Indonesia.

Well India alone is a big customer. Around 36 planes were on order with a price tag of USD 288 per piece. Besides India, UAE booked 80, Egypt 55, Indonesia 42 and Qatar 36.

Fate struck on May 7, 2025. Almost 3 Raffle planes were shot down by Pak pilots. Rumours are in the air that this number is actually 4. French military concedes one such plane being brought down. Aurangzeb Ahmed of Pakistan air force showed sky map with 3 Rafale planes being put out of action.

Eric Trappier is in the phase of damage control. In Jakarta recently he assured Indonesian authorities that nothing much is wrong with the plane. In fact he expects Indonesian order book which is currently at 36 would go up with additional 42 units in 2026. But the critical questions still remain as regards to Dassault biz strategy:

1. Is Rafale 4 is a stable jetfighter in the overall aerodynamics of a war zone?

2. Is it the plane or the pilot matters in the downing? Aurangzeb Ahmed did not pass the blame on Rafale 4.

3. Which is superior in actual battle conditions Rafale 4 or J-10 of Chengdu?

4. Which would work better PL 15 air-to-air missile of Chengdu or Meteor of Rafale 4?

5. Finally, whether “Made in India” biz strategy should be abandoned or re-visited?

6. How Eric can navigate the bitterness that felt by the Indian side re the loss of Rafale which might morph into a commercial dispute between the two parties?

7. How can Dassault solve this setback imaginatively?

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

 

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