Many drivers have noticed an unusual letter “E” printed on some manual gear knobs and wondered what it stands for. At first glance, it might seem like an extra gear or a special driving mode, leading to all kinds of theories online. In reality, the answer is much simpler and has been part of certain manual transmissions for decades.

On vehicles equipped with this layout, the “E” stands for Economy. It is an overdrive or extra-high gear designed to reduce engine speed while cruising at higher road speeds. By lowering the engine’s revolutions per minute (RPM), the gear helps improve fuel efficiency, reduce engine wear, and make long-distance driving quieter and more comfortable.

Unlike the standard first through fourth gears, the Economy gear is not intended for rapid acceleration or driving at low speeds. Drivers typically shift into it only after reaching a steady cruising speed on open roads or highways. Using it too early can cause the engine to struggle because it is designed for efficiency rather than power.

Not every manual car has an Economy gear. It was more common on certain older vehicles and commercial models where manufacturers wanted to maximize fuel savings during long trips. Modern manual transmissions often achieve similar results through different gear ratios, making a separate “E” marking less common today.

So, the mystery is finally solved—the “E” doesn’t stand for “Extra,” “Emergency,” or “Electric.” It simply means Economy, giving drivers a fuel-saving gear for relaxed highway cruising. It’s a clever feature that reflects how manufacturers once focused on squeezing every possible mile out of a tank of fuel.