An analysis was made of the transmission efficiency of a new traction drive transmission incorporating a cam mechanism for automatically generating loading force proportional to the transmitted torque. Driving force in this transmission is transmitted by a power transmission unit, bearings and an Oldham coupling. The transmission efficiency of each element was found from theoretical calculations and measurements of their friction levels in isolation. The measured and calculated efficiencies showed good agreement. The major elements were then assembled into a transmission and its transmission efficiency was measured. High transmission efficiency equal to that of gears was obtained.