Allison Transmission Provides More Than 10,000 Fully Automatic Transmissions for the Hyundai Mighty in 4 Years

Rhea-AI Summary

Allison Transmission has announced a significant milestone, with over 10,000 Allison-equipped Hyundai Mighty vehicles sold in the last 4 years since 2020. The popularity of Allison's fully automatic transmissions in these light-duty trucks has grown substantially, now equipping 50% of all Hyundai Mightys sold, up from 10% four years ago.

The success is attributed to the Allison 1000 xFE™ fully automatic transmission, which offers improved performance, increased productivity, and enhanced driver comfort compared to manual and automated manual transmissions. Key benefits include superior launch performance, smoother shifting, and elimination of clutch replacements, resulting in reduced downtime and increased economic value.

Positive

• Over 10,000 Allison-equipped Hyundai Mighty vehicles sold in 4 years
• Market share increased from 10% to 50% for Allison transmissions in Hyundai Mighty trucks
• Allison 1000 xFE™ transmission offers improved performance and productivity
• Increased economic value due to reduced downtime and eliminated clutch replacements

Negative

• None.

Insights

Market Research Analyst

The significant increase in the adoption of Allison's fully automatic transmissions in Hyundai Mighty trucks underscores a major shift in consumer preference in South Korea's light-duty truck market. The leap from 10 to 50 market penetration in four years highlights the growing demand for vehicles that offer greater comfort, ease of use and efficiency, particularly in urban environments with heavy traffic. This trend is reflective of broader global shifts towards automation and fuel efficiency in commercial vehicles, which can provide substantial cost savings over the vehicle's lifecycle.

For Allison Transmission, this success story with Hyundai could pave the way for similar partnerships with other OEMs in Asia and globally. Investors should keep an eye on how this partnership affects Allison's market share and revenue, especially in regions where urbanization and logistical demands are increasing. Given the proven benefits such as improved fuel economy and reduced maintenance costs, the market is likely to see a continued preference for automatic transmissions, which could sustain Allison's growth trajectory.

Financial Analyst

The milestone of delivering over 10,000 units of the Allison 1000 xFE™ fully automatic transmissions in Hyundai Mighty trucks indicates strong demand and successful market penetration, which could positively influence Allison Transmission's revenue streams. The increased market share from 10 to 50 within four years signals robust sales growth and brand acceptance. From a financial perspective, this positions Allison well for future earnings growth and potential expansion in other markets facing similar logistical challenges.

Investors should note the operational benefits mentioned, such as fuel efficiency and reduced downtime, which are significant cost-saving elements that can appeal to fleet operators. The increased economic value for customers could translate into sustained demand and recurring revenue streams for Allison, enhancing profitability. Additionally, the strategic placement of Allison in the valuable logistic and service vehicle sectors can provide stable and potentially growing income, benefiting long-term shareholders.

Automotive Industry Expert

The rise in the adoption of fully automatic transmissions in Hyundai Mighty trucks reflects a broader industry trend towards automation and improved vehicle performance. The Allison 1000 xFE™ transmission, with its patented torque converter, offers distinct advantages over traditional manual and automated manual transmissions (AMTs), including smoother shifting and enhanced driver comfort, which are important for applications involving frequent stop-and-go traffic.

This technological edge can be a significant differentiator for Allison, especially in markets prioritizing driver comfort and operational efficiency. The durability and fuel efficiency benefits also align with global trends toward sustainability and cost reduction in fleet operations. Given these advantages, Allison's technology could set a new standard in the market, prompting competitors to innovate, which could be beneficial for the industry's overall growth and evolution.

Allison experiences significant growth alongside South Korea's top-selling light-duty truck.

INDIANAPOLIS, July 16, 2024 /PRNewswire/ -- Allison Transmission today announced that more than 10,000 Allison-equipped Hyundai Mighty vehicles have been sold in the last 4 years since its 2020 integration. Half of all Hyundai Mightys sold today are equipped with Allison fully automatic transmissions, up from 10% versus four years ago. The 10,000th Mighty truck with an Allison fully automatic transmission was delivered to Unchang Logitec, a leading Korean logistics company servicing South Korea's largest laundry service provider.

"Visiting university hospitals to pick up and return laundry involves a lot of highway traffic jams and city driving," said Kim Dae-sung, Director, Unchang Logitec. "Automatic vehicles are very comfortable to drive, even when the vehicle is stuck in traffic jams with repetitive stop-and-go traffic. We are very satisfied with the Allison-equipped Mighty automatic truck because it is easy to drive, fuel efficient, productive and durable."

Hyundai Mighty is a 2.5- and 3.5-ton light-duty truck, which has unrivaled market share in South Korea. Mighty automatic trucks have been on the rise in recent years, meeting market demand for driving comfort, fuel economy, reliability, serviceability and productivity. Allison has delivered more than 10,000 units of the Allison 1000 xFE™ fully automatic transmissions for the Hyundai Mighty since its launch in 2020. Mighty automatic trucks are used in a variety of applications, including pickup and delivery trucks, cargo trucks, refuse vehicles, firefighting trucks and specialty vehicles.

"We are thrilled to see the tremendous success of Allison-equipped Hyundai Mighty vehicles. The rise in popularity of fully automatic transmissions in Asia is a testament to the exceptional driving experience and unmatched performance that our transmissions offer," said Heidi Schutte, Allison Transmission Vice President EMEA, APAC & South America Sales. "Allison's commitment to driving comfort, fuel efficiency, reliability, and productivity has resonated with customers, and we are proud to be at the forefront of this transformative shift in the industry."

The Allison 1000 xFE™ offers improved launch performance, increased productivity, smoother shifting, easier operation and enhanced driver comfort, as compared to competitive manual and automated manual transmissions (AMTs). The Allison 1000 xFE fully automatic transmission utilizes a patented torque converter, which offers superior performance and eliminates clutch replacements. This results in increased economic value due to productivity and reduced downtime versus traditional manual and AMTs.

To learn more about how Allison xFE delivers more value through Extra Fuel Economy, visit allisontransmission.com.

About Allison Transmission
Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has approximately 1,600 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/allison-transmission-provides-more-than-10-000-fully-automatic-transmissions-for-the-hyundai-mighty-in-4-years-302198588.html

SOURCE Allison Transmission Holdings Inc.

FAQ

How many Allison-equipped Hyundai Mighty vehicles have been sold since 2020?

Over 10,000 Allison-equipped Hyundai Mighty vehicles have been sold since 2020.

What percentage of Hyundai Mighty trucks are now equipped with Allison transmissions?

50% of all Hyundai Mighty trucks sold today are equipped with Allison fully automatic transmissions.

What are the benefits of the Allison 1000 xFE™ transmission for Hyundai Mighty trucks?

The Allison 1000 xFE™ transmission offers improved launch performance, increased productivity, smoother shifting, easier operation, enhanced driver comfort, and eliminates clutch replacements.

In which applications are Allison-equipped Hyundai Mighty trucks used?

Allison-equipped Hyundai Mighty trucks are used in various applications, including pickup and delivery, cargo transport, refuse collection, firefighting, and specialty vehicles.