What Does the “E” on Old Car Gear Shifts Mean? (Simple Explanation Drivers Should Know)

When drivers engaged the Economy setting, the car’s transmission system adjusted the shift points.

Instead of waiting until the engine reached higher revolutions, the gearbox would shift sooner to keep the engine operating at a lower RPM range.

This had several effects:

Improved fuel efficiency
Reduced engine wear
Smoother, quieter driving
Less aggressive acceleration
Some vehicles even modified throttle response, meaning pressing the gas pedal harder didn’t immediately cause rapid acceleration.

This encouraged drivers to maintain steady speeds and smooth driving habits, which further improved fuel economy.

Why Modern Cars No Longer Have an “E” Gear
As vehicle technology advanced, manual economy modes became unnecessary.

Modern cars use onboard computers and advanced engine management systems that automatically optimize fuel efficiency without requiring driver input.

Today’s vehicles constantly monitor factors like:

Driving speed
Throttle input
road conditions