With ever-increasing rise in inflation, fuel costs and taxation, we endeavor to design and fabricate a fuel-efficient bike, which is of low cost and high efficiency. It is proposed to overcome the drawbacks of existing electric bikes, which are currently available in the market. Our project ‘the hybrid bike with 3 speed transmission system’ is an electromechanical system which consists of two phases. In the first phase, it works as an electric bike which is eco friendly and in the second phase it works on an ic engine. The second phase is used only when the battery is discharged completely and during high speed application. The main feature which makes this hybrid bike an outstanding one from the existing electric bikes is the presence of three speed transmission system (gear) which is used for effective speed control of the motor as well as the ic engine. The bike has a maximum speed of 75 km/hr whereas existing electric bikes can reach only up to 40 km/hr. The mileage rs 1 gives 8. 92km