Allison Transmission Inc., a leading U.S. manufacturer of automatic transmissions for trucks, buses, off-road, and military vehicles, has finalized an agreement with the Tamil Nadu government to expand its Chennai manufacturing facility. The $92 million (₹763 crore) expansion, set to begin in 2025, will effectively double the size of the current facility and create 167 new jobs, both direct and indirect, according to TRB Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce.
This expansion follows Allison Transmission’s announcement in October 2024, aimed at meeting the increasing global demand for its fully automatic transmissions. The multi-year investment, surpassing $100 million, will significantly enhance the production capacity of Allison’s on-highway transmission portfolio and improve operational flexibility and capabilities on a global scale.
David S. Graziosi, Chair & CEO of Allison Transmission Holdings, Inc., shared that nearly half of the $100 million investment would be allocated in 2025, with full production ramping up by 2027. “This expansion will help us achieve long-term growth outside of North America, increase global capacity, and deliver cost efficiencies across our operations,” Graziosi said.
Since its opening in 2010, Allison’s Oragadam facility near Chennai has served as a regional hub, initially producing parts for the 1000 Series and 2000 Series on-highway products. The facility was expanded in 2012 to assemble these transmission models. Now, it is set to enhance its capabilities for the 3000 Series and 4000 Series transmissions to meet regional demand.
In addition to the expansion, Allison Transmission has partnered with Ashok Leyland, a leading Indian commercial vehicle manufacturer, to launch the country’s first low-floor city buses equipped with fully automatic transmissions. These 12-meter diesel buses, featuring Allison’s Torqmatic Series transmissions, are designed to offer better accessibility for passengers with disabilities.
Allison Transmission (NYSE: ALSN) is a global leader in designing and manufacturing propulsion solutions for commercial and defense vehicles. The company is the world’s largest producer of medium- and heavy-duty fully automatic transmissions, enabling industries to operate more efficiently and reliably.
Allison’s products are utilized across diverse applications, including on-highway vehicles for distribution, refuse, construction, agriculture, and emergency services; buses for school, transit, and coach; motorhomes; off-highway vehicles supporting energy, mining, and construction; and tactical defense vehicles, both wheeled and tracked.
Established in 1915 and headquartered in Indianapolis, Indiana, USA, Allison operates in over 150 countries. It maintains regional headquarters in the Netherlands, China, and Brazil, with manufacturing facilities in the USA, Hungary, and India. The company also boasts advanced engineering resources, including electrification centers in Indianapolis, Auburn Hills, Michigan, and London, UK.
Supported by a network of over 1,600 independent distributors and dealers worldwide, Allison remains at the forefront of innovation, delivering reliable solutions that power industries and improve global operations.
