For decades, drivers have been familiar with standard gear markings: numbered gears and “R” for reverse in manual cars, or “P,” “N,” “D,” and “R” in automatics. So when some motorists spotted the letter “E” on certain older gear sticks, it sparked confusion. Many younger drivers had never seen it before and weren’t sure what it meant.

In older vehicles, “E” stood for “Economy.” It functioned as a fuel-saving mode, typically keeping engine revolutions lower and optimizing performance for steady cruising rather than acceleration. At a time when engines were more mechanically controlled, this setting helped drivers consciously reduce fuel consumption, especially during highway travel.

As automotive technology advanced, the need for a dedicated Economy gear disappeared. Modern cars use computerized engine management systems, improved aerodynamics, and refined transmissions that automatically balance efficiency and power without requiring manual selection. What once required a specific gear setting is now handled seamlessly by onboard software.

Today, the letter “E” has taken on a new meaning in the automotive world — most commonly associated with electric vehicles. Unlike traditional cars, EVs don’t rely on multi-speed gearboxes, often using simplified controls instead. In that sense, the “E” has evolved from symbolizing fuel efficiency to representing the broader shift toward electric mobility and the future of transportation.