With the advent of technology and science, researchers have shown interest and developed a new technology incorporating permanent magnets. This concept is applied in magnetic gearing to achieve low-speed high- torque direct-drive operation. The speed is altered by the use of gears and gearboxes. The magnetic meshing of gear overcomes the limitations of mechanical gearing system like vibrations, noise, friction due to contact. The efficiency of 99% or greater can be achieved at full load conditions. The magnetic force of attraction aids in the magnetic meshing of the gear teeth. There is no physical contact of the gear teeth. By the use of such system, the wear and tear of the gears are reduced to a great extent. The heat generated in the gears while working is almost nil in this method. Unlike mechanical gearing system, the process of transmitting power is smooth and silent. Magnetic gearing system can be incorporated in automobiles for transmission of power to achieve higher efficiency. This kind of setup requires very minimum maintenance. Permanent magnets are used to produce the magnetic field which helps in the transmission of energy without contact. Ferrite magnets and high power rare earth neodymium magnets are used in making the gears.