A novel gearshift scheduling strategy has been framed for a two-speed transmission system in electric vehicles that can save energy during hilly driving and frequently changing driving conditions through efficient electric motor operation. Unlike the traditional approach, the proposed gearshift strategy is based on the preferred vehicle speed range, vehicle acceleration, and road grade to ensure desired vehicle performances with minimum energy consumption. Meanwhile, the vehicle speed range is chosen around the electric motor rated speed, and two gearshift schedules in relation to vehicle acceleration and road grade are developed based on the motor torque generating capacity and efficiency. Appropriate gear is selected through a combined assessment of the required vehicle speed, acceleration, and road grade information. A guideline is developed and explained for the primary gearshift schedule. Next, the gear ratios and gearshift schedules are optimized combinedly in a Simulink environment using the gradient descent method and pattern search method on three driving cycles separately. Depending on the driving scenarios, around 4% to 7.5% energy saving has been experienced through optimization, while the gear ratios and gearshift schedule in relation to the road grade are found to be major contributors to the vehicle economic driving compared to that with the gearshift schedule for vehicle acceleration.