The transmission is a critical part of a vehicle that transfers power from the engine to the wheels. It works by using gears to convert the engine's power into torque that can drive the wheels. The transmission's components include the gearbox, clutch, and driveshaft that work in unison to manage the vehicle's speed and direction of travel. Essentially, the transmission allows the engine to operate within its optimal range, providing torque and power to the wheels as needed, while also allowing the vehicle to change speed smoothly and efficiently.