Abstract: An electromagnetic continuously variable transmission with two mechanical ports and one electrical port (consisting of two concentric permanent magnet machines and two invertors) is discussed. The transmission may replace the clutch, gearbox, generator and starter motor in a vehicle. According to the analysis of the power flow model of this transmission, the efficiency of this transmission is higher than that of the cascade system in vehicle. The optimization energy distribution method of the machines of this transmission is discussed and applied to the simulation of the vehicle with this transmission by matlab/simulink environment. The result of the simulation of the electromagnetic continuously variable transmission for vehicle shows that the application is feasible.