Allison Transmission’s origins can be traced back to 1915. Our founder, James Allison, was a prominent figure, not only for starting the Allison company but also as one of the four co-founders of the famous Indianapolis 500, the annual racing event in Indianapolis. Initially, we were known as Allison Engineering. Over time, we became pioneers in the automatic transmission space. Our first transmissions were used in buses, and from there, they expanded into various applications. We have become a preferred supplier of automatic transmissions for original equipment manufacturers (OEMs) across both sectors, including buses, trucks, and vehicles used in mining and the oil and gas industries.

For much of our history, Allison was owned by General Motors. However, in 2007, we were divested from GM and acquired by a private equity firm. In 2012, we went public and have remained a publicly traded company since then. Our experience in off-highway markets spans about 65 to 70 years, primarily serving the mining and oil and gas sectors. In fact, we’ve been a leading supplier of transmission solutions for mining trucks worldwide. More recently, in the last 20-25 years, we’ve diversified into new technologies. For example, in 2003, we introduced the first hybrid system for transit buses, and that product has evolved significantly. Most recently, in 2019, we acquired a company called AxleTech, which allowed us to enter the electrification space with electric axles. This shift has transformed us from primarily being a transmission company to a broader powertrain solution provider.

In the mining sector, several key trends are emerging. First and foremost, safety has become a top priority. There’s a growing focus on ensuring that operators are comfortable and can work safely, which is driving new regulations and restrictions on the types of equipment used. Second, there is a significant demand for energy, which is driving increased mining activity. Coal mining has seen growth due to the energy demand, and there has also been a rise in the mining of precious metals like cobalt, nickel, and lithium to support electrification.

Additionally, new technologies are being explored, such as autonomous vehicles in mining operations, which ties back to safety improvements. Another important trend is improving driver comfort, which is directly linked to productivity. From a broader perspective, companies in mining are increasingly focused on total cost of ownership. It’s no longer just about the upfront price of a transmission or vehicle; operators are considering the return on investment over the vehicle’s lifetime. This shift in mindset has led to a greater emphasis on optimising performance over various duty cycles.

The mining sector has diverse conditions, and a mine in Indonesia, for example, will look very different from one in India or South Africa. We refer to these as different “duty cycles”. Equipment needs also vary, from large rigid dump trucks used for coal transport to wide body trucks used for overburden removal in new mines. These varying conditions and equipment types require versatility. Our focus has been on making our transmissions more adaptable to these diverse conditions and optimizing their performance through software and control systems, which helps improve efficiency, fuel economy, and total cost of ownership.

India has experienced significant activity in the mining and construction sectors recently. The trends I mentioned—such as safety, energy demand, and the focus on automation—are very much relevant in the Indian market. One key observation is the increased demand for automation and productivity, as well as a growing focus on total cost of ownership. India is on par with global markets in terms of demanding high returns on investment. As a result, automation in Indian mines has increased, and open-pit mining activity is picking up. The emphasis on safety remains a universal concern.

Given these factors, India is an important market where value differentiation is key.

One of the primary challenges in India is that it is still a relatively young market for us. One of the biggest hurdles is to understand the unique needs of the end users in India. We cannot assume that Indian customers will demand the same things as those in other markets. It’s critical for us to tailor our products and business approach to fit the local market. This isn’t just about adapting the product; it’s also about how we conduct business, support customers, and ensure a positive overall customer experience. This cultural and market understanding is essential for sustainable success.

Yes, we’ve had several successes in India. Notably, our 6000 Series™ transmissions are being used in rigid dump trucks operating in coal fields across the country. Over the past few years, we’ve also seen growing adoption of wide body trucks in India. We’ve partnered with companies like Sany and Liugong, who are supplying these trucks, and we’ve found considerable success in the market.

We have a plant in Chennai, where we handle the assembly of some of our on-highway products, such as the 1000 and 2000 series. As for off-highway products, the housings are machined in Chennai. However, the final assembly of these products is currently done in North America, specifically in the Indianapolis area. That said, we’re continuously assessing how we can adapt to the dynamic Indian market, so we remain flexible and open to future opportunities.

Our strategy in India is two-fold. First, from a market perspective, we aim to understand the local market better and identify where we can add value in both the on-highway and off-highway commercial vehicle segments. We are continuously assessing how our product portfolio aligns with local needs. Second, from a supply chain standpoint, India is a hub for sourcing components, and we are keen to leverage its strategic sourcing capabilities. So, our strategy includes both expanding sales of transmissions and enhancing our sourcing capabilities to stay aligned with the market's evolving demands.