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Environmental issues caused by global warming, limited resources as well as future binding CO2 targets are pushing for low carbon technology. In this respect electrification and hybridisation has gained impressive momentum and will become a leading technology for future road vehicles. A significant market share of up to 10% of the total vehicle market is expected within 10 to 15 years time. Technology for EV&HEV transmission is based on conventional manual/automatic transmissions and geared components for AWD-systems, but has to be extended and adapted to meet the needs of electric drive systems. Major development challenges like e-motor/gearbox interface, e- motor integration, high input speed, high efficiency and park lock or disconnect features will be presented in this paper. The paper will describe in more details a newly developed eDrive transmission with disconnect feature for a hybrid AWD system. This hybrid concept combines hybrid, EV and AWD function in a beneficial way.