The planetary gear system is a critical component in speed reduction of gear system. It consists of a ring gear, set of planetary gears, a sun gear and a carrier. It is mainly used in high speed reduction transmission. More speed variation can be achieved using this system with same number of gears. This speed reduction is based on the number of teeth in each gear. The size of new system is compact. A theoretical calculation is performed at concept level to get the desired reduction of speed. Then the planetary gear system is simulated using ANSYS software for new development transmission system. The final validation is done with the testing of physical parts. This concept is implemented in 9speed transmission system. Similar concept is in development for the hub reduction with planetary gears. The maximum 3.67 reduction is achieved with planetary system. The stresses in each pin is calculated using FEA.