For gears used in the transmissions and suspensions of automobiles and construction equipment, machinability is important simultaneously with strength. Hence these are manufactured by a process of forging and machining followed by surface hardening by carburization, using case hardening steels. In recent years, higher strength in these gears has been strongly desired from the viewpoints of weight reduction and downsizing. In automotive applications, heat-treatment distortion of gears has also become a problem due to demand for reduced noise. This project aims at the development of an energetic production of forged gears with dual phase microstructure leading to reduced distortion.