Allison Transmission Holdings Inc (Allison) designs and manufactures commercial and defense automatic transmissions and electric-hybrid and fully-electric systems.

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Allison invests significant resources in research and development to develop or introduce new products and technologies, improve the efficiency and performance of current products, and respond to customer needs. The company is currently working on enhancements to existing products and technologies, as well as new products and technologies, including electric hybrid and fully electric propulsion solutions, for planned introduction into certain end markets. It also focuses on introducing improved and new products in the marketplace. The R&D units of Allison include the Innovation Center in Indianapolis, which focuses on engineering, research, and development, and the Vehicle Electrification + Environmental Test (VE+ET) Center in Indianapolis, which is dedicated to research and development activities. In FY2025, the company incurred an expense of US$174million on R&D, which decreased 13%YoY and stood at 5.4% of its total revenue.