Drivers are just discovering that the “E” on some car gear sticks typically stands for “Economy” mode, a setting designed to improve fuel efficiency. When activated, it adjusts throttle response and gear shifting patterns to reduce fuel consumption. This feature helps optimize performance for everyday driving, especially during city commutes or long-distance trips.

For decades, drivers have relied on a largely standardized gear layout that became second nature to anyone behind the wheel. In manual cars, numbered gears indicated forward motion, accompanied by an “R” for reverse, forming a familiar pattern repeated across countless makes and models. Automatic transmissions simplified the process further, typically presenting “P,” “N,” “D,” and “R” — shorthand for Park, Neutral, Drive, and Reverse — and occasionally an “L” for low gear when additional torque was required. Because these configurations were so consistent, motorists rarely needed to question their meaning. That is why the appearance of the letter “E” on certain older gear sticks recently sparked widespread curiosity. Many drivers, especially younger ones, admitted they had never encountered it and were puzzled about its purpose.

The renewed interest gained momentum through a discussion highlighted by Supercar Blondie, where followers were asked whether they recognized what the “E” represented. Those with longer driving histories quickly supplied the answer: “E” stood for “Economy.” In select vehicles from previous decades, this setting functioned similarly to a high gear but was specifically calibrated to improve fuel efficiency. By keeping engine revolutions per minute lower during steady cruising speeds and, in some cases, subtly modifying throttle response or shift patterns, the Economy mode aimed to reduce fuel consumption. At a time when fuel costs and efficiency concerns were growing, this feature offered drivers a practical way to stretch each tank of gas a little further.

The existence of an Economy gear reflects a transitional era in automotive engineering. Before sophisticated onboard computers became standard, many efficiency improvements relied on mechanical solutions or driver-selected modes. Engaging the “E” setting signaled a deliberate choice to prioritize conservation over performance. It often worked best during highway driving or consistent-speed travel, where maintaining lower RPMs could meaningfully reduce fuel usage. However, the trade-off sometimes included slower acceleration or reduced responsiveness, meaning drivers had to balance their desire for efficiency with their need for power. In this way, the “E” gear was both functional and symbolic — a small but visible reminder that fuel economy required conscious participation.

As automotive technology advanced, the need for a separate Economy gear gradually diminished. Modern engines are engineered with far greater precision, incorporating advanced fuel injection systems, variable valve timing, turbocharging innovations, and refined aerodynamics. Most importantly, computerized engine management systems now monitor driving conditions in real time, automatically adjusting fuel delivery, ignition timing, and transmission behavior to optimize both performance and efficiency. Instead of relying on a manually selected gear position, contemporary vehicles seamlessly integrate fuel-saving strategies into everyday operation. The driver no longer needs to think about engaging an Economy mode because the car’s internal systems are constantly making those calculations.