Working of transfer case: When the shifter-A is at the central position as shown in fig. here neither the gear G1and nor the gear G2 is connected to the input shaft, it is known as neutral position. When the shifter-A connects the input shaft with big input gear G2, and the shifter-B disconnects the front output shaft from the rear output shaft. In this position, rear two wheel drives with the high gear is obtained. Similarly when the shifter-A connects the input shaft with small input gear G1, and the shifter-B connects the front output shaft from the rear output shaft. In this position, four- wheel drive with the low gear is obtained.
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Application of Transfer case: Transfer case is used in four wheel drive vehicle along with main gearbox to transmit torque and power to the rear axle.