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To meet the specific requirements of electrically driven passenger cars, Steyr-Daimler Puch Fahrzeugtechnik (SFT) has developed an advanced, optimized drive train integrating both functionally and physically the components of electric motor, electronic control, charging system, transmission, and final drive. Subject of this paper is the design and function of the transmission system. Most of the state of the art EV drive systems are designed with a single transmission ratio. This, however, leads to high peak currents, a heavy electric motor, and inefficient use of the battery energy to achieve sufficient gradeability, traction, and acceleration. To avoid these disadvantages, SFT has developed a transmission system with a low gear for low speed/high traction conditions, and a high gear for normal driving. Gear shift between low and high is fully automatic, and carried out by an electric actuator.