How Transmissions Became A Part Of Every Car, And Why They Will Again In The EV Era
Transmissions Shaped the Auto Industry—And Why EV OEMs Need Them.
For decades, transmissions had been an unquestioned part of automotive design—until electric vehicles came along. With their instant torque and simplified drivetrains, EVs seem to operate well without the multispeed transmissions from the Internal Combustion Engine (ICE) age. However, look back at the early days of the automobile and the development of the first transmissions and you’ll see a landscape that mirrors where EVs are today.
History has a way of repeating itself - Just as early cars first relied exclusively on brute-force engine power to achieve performance targets, today’s EVs are facing similar limitations in efficiency and performance by asking more and more from the electric motors. There comes a tipping point where the trade-offs outweigh the advantages, and we are fast approaching it. As the industry demands longer range and more cost-effective electric powertrains, mulit-speed transmissions will re-emerge as a critical piece of the puzzle. To understand why, we have to look back at how they became essential in the first place.
Early Automotive Design Philosophy
The first cars produced in the late 1800s were simplistic and low-powered. Early car builders often pursued performance by increasing engine size and power output. For example, Benz’s Patent-Motorwagen evolved from a 0.75-horsepower (HP) single-cylinder engine in 1885 to a 1.5HP version in 1887 and a 2HP model by 1888—effectively increasing engine capacity to enhance performance. This “bigger engine” approach would yield improvements to vehicle performance and capabilities , but it had limits: engines became heavier, consumed more fuel and were more expensive. As vehicles started to drive faster and carry heavier loads, it became clear that relying solely on engine size was not a sustainable solution for performance & cost.¹
The Emergence of Transmissions
Technical & commercial challenges in early cars highlighted the need for multi-ratio transmissions. Internal combustion engines have a narrow optimal RPM range for efficiency and torque, so a single fixed gear was a compromise – great for either low-speed torque or high-speed cruising, but not both. An engine geared to launch the car at grade might over-rev or waste energy at higher speeds; an engine geared for high speed would struggle to get the car moving. Early automobiles suffered in efficiency on varied terrain (e.g. climbing hills) and often required oversized engines to compensate. These challenges drove inventors to experiment with gearing.
By the 1890s, the first multi-speed transmissions appeared: The first true gearbox with multiple forward speeds was introduced in 1894 as part of the Panhard et Levassor Type A, using manually shifted gears.². This allowed drivers to change gear ratios and keep the engine in a more effective RPM range, greatly improving both performance, driveability and fuel efficiency, a big advance for the vehicle technology of the time. The trade-off was added complexity and cost, initially posing a challenge for automakers. For transmissions to be widely adopted in mass market passenger vehicles, they had to meet market-driven thresholds in three key areas:
Cost – Feasibility for mass production at competitive prices
Efficiency – Better the ratio of energy input to usable output in the drivetrain
Performance – Improved utility and capability.
1. Cost and Manufacturing Feasibility:
In the earliest years, gearboxes were expensive and complex to build. However, mass-production techniques (pioneered by Ford and others) quickly made transmissions cost-effective to manufacture and install. By the 1920s, two-speed transmissions were standard equipment even on affordable cars, indicating that the cost per unit had dropped and consumers demanded the capability. The planetary 2-speed in the Model T (1908) is a classic example of a simple, robust transmission that was cheap enough to include in a mass-market car, proving the cost hurdle could be overcome.
As designs standardized, transmissions actually saved costs – a car with a smaller engine plus a gearbox could meet performance targets more cheaply than a car that tried to use a very large engine with no gearbox. By the post-WWII era, the economies of scale made even 3- or 4-speed automatics affordable options.
2. Efficiency:
A major impetus for adding a multispeed transmission was to maximize fuel economy through having the engine spend time at its optimum state.. Early manual transmissions often employed sliding-gear designs, which required drivers to manually mesh gears. These transmissions were not synchronized, making gear shifts challenging and less efficient. In contrast, modern automatic transmissions have achieved efficiencies ranging from 86% to 94% through the shift
Each additional gear allowed the engine to run closer to its most efficient RPM over a wider range of vehicle speeds.Transmissions also enabled downsizing engines for economy: an efficient small engine with the right gearing can perform like a larger engine but use less fuel. Regulatory pressure, like those on oil and fuel efficiency in the 1970s, accelerates the transition. In this way the gearbox became a key tool for meeting regulatory requirements over the decades.
3. Performance and Drivability Gains:
For transmissions to gain widespread adoption, they had to meet usability thresholds that ensured an uninterrupted and seamless driving experience. Early transmissions often required significant driver effort, with non-synchronized gears leading to difficult shifts, noise, and excessive wear. However, as engineering improvements enabled smoother, synchronized shifts and automatic options, transmissions became effortless to use and highly reliable over long periods. Once these usability hurdles were overcome, consumers quickly embraced the added performance benefits. A more enjoyable driving experience—all without added complexity for the user. As a result, transmissions transitioned from being a mechanical necessity to a fundamental expectation in vehicle design.
The improvements were the result of engineering effort to meet these thresholds, cementing transmissions as a fundamental component of automotive design since the early 1900s.
The History of ICE Transmission Evolution
The Current State of EV Drivetrain: Big Battery, Big Motor, Single Gear
Today, electric vehicles (EVs) currently use single-speed drivetrains – typically just one fixed gear reduction between the electric motor and the wheels - Similar to the direct drives of the early ICE Age. EV designers have thus far opted to achieve the desired performance and range by using larger, more powerful, faster spinning electric motors, and sophisticated electronic control. This approach has been acceptable to the consumer since electric motors have a much wider speed range than gasoline engines. An EV motor generates peak torque from 0 rpm (launch) and sustains useful power across a broad rpm range (cruise). Automakers have found that they can cover both low-end acceleration and high-speed cruising by selecting an appropriate single gear ratio and then using a motor (or multiple motors) potent enough to deliver on both ends. The industry’s design philosophy so far has therefore been to keep the drivetrain mechanically simple (one gear) and rely on the motor’s flexibility and managing the associated motor complexity
But it hasn’t always been this way. In fact, Tesla’s early experience with the original 2008 Tesla is demonstrative of the challenges of using ICE-age transmissions in EVs. The Tesla Roadster attempted to use a legacy 2-speed transmission to meet its ambitious acceleration and top speed targets. However, the conventional ICE-age gearbox could not handle the high torque and failed in testing, forcing Tesla to abandon it. This transmission couldn’t meet the cost, efficiency, or performance thresholds needed for transmissions to be successful in this new generation of vehicle. Electric motors had changed the game.
Tesla’s solution was to drop the transmission entirely and go with a single-speed, compensating by upgrading to a more powerful motor to hit the performance goals.³ This set the tone for many EVs to come. Manufacturers have, so far, been willing to tolerate the complexity, weight and cost increase of a larger motor in exchange for the mechanical simplicity of a single-speed drivetrain. This is due, in part, to the perception that the complexity, weight and cost of today’s modern transmission is not the most effective way to meet the vehicle requirements. The paradigm to today is to iterate on the motor
EVs suffer from the Inherent Limitations of Single-Speed Drives
The one-gear approach works in a price-insensitive EV marketplace, but it isn’t without compromises. Single-speed setups can push the electric motor out of its ideal efficiency zone, just like the internal combustion engines of the past. At high highway speeds, the motor can spin at a high RPM where its efficiency drops off, wasting energy as heat. Likewise, at very low speeds or heavy loads (towing, steep grades), a single gear might force the motor to draw huge currents to produce the needed wheel torque. Using a single fixed gear ratio means EV designers must make a trade-off between acceleration (torque) and top speed and include excess battery capacity to offset the losses.
Automakers try to find an optimal middle ground, and powerful motors help mask the compromise – but the underlying limitation remains. As Mate Rimac (designer of the Rimac Concept One electric hypercar) explained, “in electric cars you normally need to decide between acceleration or top speed when you have a single-speed gearbox”.⁴
Academic and industry research backs up these examples. Multiple studies have investigated two-speed or multi-speed EV transmissions. For instance, a 2015 simulation study by Zhang et al. found that adding a two-speed gearbox to an EV could reduce energy consumption by ~6.6% and increase driving range by ~7% compared to a single-speed drive.⁵ In general, literature suggests a meaningful efficiency gain on the order of 5–10% with addition of a 2-speed transmission, as well as the ability to use a smaller motor for the same performance.
Product Planners: What could you do with 5-10% more range from the same battery pack?
So Why Haven’t We Seen A Proliferation Of Multispeed Transmissions In EVs?
These efficiency improvements translate into extended range or the possibility of using a smaller battery pack for the same range, which in an industry obsessed with squeezing out every extra mile, is significant. Such findings are spurring continued R&D – evidenced by many patents being filed for multi-speed EV transmission designs. In fact, an analysis by GlobalData found over 120 companies, from startups to major automakers, are actively working on two-speed EV transmission innovations, indicating broad interest in this area. Major carmakers like Hyundai, Mercedes-Benz, and Toyota are among the top patent filers, aiming to enhance acceleration and high-speed efficiency with multi-gear systems in their future EVs.⁶
Why have we seen so few of these make it to market? To date, manufacturers have tried to use ICE-age transmission designs and techniques in EVs to reap the benefits of multi gear setups. These efforts have met challenges, because EVs increased the thresholds in each of the 3 areas:
Cost – EVs drivetrains are simpler and lower cost than their ICE counterparts. EV Transmissions must be compact and ready for mass production at ultra low costs
Efficiency – Due to range anxiety and battery charge times, EV drivetrains demand higher efficiency compared to their ICE counterparts - EV Transmissions must be >97% efficient to add value to the vehicle
Performance – EV fixed-ratio drivetrains are smoother and more powerful than their ICE counterparts. To compete in EVs, multi-speed transmissions must deliver imperceptible shifts with no gaps in torque delivery. However, the high torque and extended RPM range of electric motors place new durability demands on gear design. At the same time, the bar for noise, vibration, and harshness (NVH) is even higher, requiring transmission solutions that enhance performance without compromising refinement.
Conventional ICE-age transmission designs have not met the evolving demands of EVs in these areas. They tend to be costlier, less efficient, and struggle to deliver the seamless shifts required for EV applications. However,If history is any guide, the trajectory of EV drivetrains will eventually mirror that of ICE vehicles in embracing multi-speed transmissions that exceed the market thresholds in all 3 of these areas. To achieve this, invention is required.
That’s why Inmotive conceived a 2-speed transmission that’s fundamentally different - the Ingear is the first example of a transmission that meets the EV demands in all 3 of these categories simultaneously. Our patented technology is similar in costs to a fixed gear drive, operates at >99% efficiency, and has an imperceptible shift with continuous power delivery.
The Road Ahead
In an era where EV manufacturers are engaged in aggressive cost competition, the ability for OEMs to meet performance targets at a lower cost will become a defining factor in market differentiation. Just as multi-speed transmissions allowed smaller, more efficient internal combustion engines to outperform larger, fuel-hungry alternatives, applying similar principles to EVs enables automakers to achieve strong acceleration and range while reducing reliance on expensive components like the geopolitically risky high-capacity batteries, oversized rare-earth motors, and supply-chain challenged chips and power electronics.
By optimizing power delivery through gearing, manufacturers can extract more performance from smaller motors and extend range without adding battery. OEMs who do adopt will see lower production expenses and enhanced vehicle efficiency, creating a clear divide in the EV market between cost-effective, high-performing models and those that remain constrained by the inherent limitations of single-speed drives.
The story of transmissions is one of necessity, innovation, and eventual ubiquity. Historically, they unlocked efficiency, performance, and cost advantages for combustion engines, shaping the trajectory of automotive design. Now, as EVs dominate the future, the same fundamental forces are at play. The industry’s early skepticism toward multi-speed transmissions in EVs mirrors past resistance to technological shifts—but as history has shown, efficiency, cost, performance advantages ultimately drive adoption. With automakers seeking new ways to differentiate on cost, range, and power delivery, the case for multi-speed EV transmissions is only growing stronger.
Just as they once transformed ICE vehicles, transmissions will once again prove inevitable in shaping the next generation of electric mobility.
About Inmotive Inc.
Inmotive is a pioneering developer of ultra-efficient multi-speed powertrains for electric vehicles. The company’s flagship product, the Ingear™ transmission, delivers superior efficiency and performance for a wide range of EV applications. Committed to advancing sustainable mobility, Inmotive partners with leading manufacturers to redefine what’s possible in electric and alternative energy transportation.