Allison Transmission investing $100M-plus to expand production in India
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Indianapolis-based Allison Transmission Inc. is investing more than $100 million to expand an existing manufacturing facility in India, the company announced Thursday.
Allison makes automatic transmissions for commercial and military vehicles, as well as electrified propulsion systems. The company said the project will add 200,000 square feet to its Chennai facility, doubling its current manufacturing footprint at the site. Chennai is a coastal city in the southeastern part of India.
Construction is expected to be complete in 2025, and the company expects the addition to go into operation in 2026 and ramp up to its full production capacity in 2027.
In the announcement, Allison said it is seeing a growing global demand for its on-highway automatic transmission products, and the expansion project will help the company meet that demand. The company’s on-highway transmissions are used in a range of vehicles such as semi trucks, dump trucks, buses and motorhomes. Allison also serves the off-highway market, which includes construction and mining vehicles.
The Chennai plant, established in 2010, and another in Hungary, established in 2011, are Allison’s only two manufacturing sites outside of the United States. The company also has manufacturing sites in Auburn Hills, Michigan, and in Lewisburg, Tennessee, as well as in Indianapolis. The company also has regional headquarters in the Netherlands, China and Brazil, and electrification engineering centers in Indianapolis, Auburn Hills and London.
Allison reported annual revenue of $3 billion in 2023, 75% of which was generated in North America. The company also has customers in Asia, Europe, South America and Africa.
The company has 3,500 global employees, with 2,800 of those in Indiana.