This paper describes the design methodology and algorithm development towards the design of an automatic external gear-shifting and clutch-actuation system for a sequential gearbox with the aim of providing the drivers with easier and an efficient means of shifting gears. Automatically actuated manual transmission system bridges the gap between automatic and manual transmissions which provides the advantages of both type of transmissions. This would ideally leads to faster shifting time and provide significant benefits in the form of electronic-AIDS like launch control and traction control. Removal of mechanical clutching would reduce fatigue and lead to ergonomic benefit. Based on the benchmarking performed on an easily available ready-to-install aftermarket alternative, options will be considered for the actuating mechanism and the most feasible will be used to develop a shifting system. A total shift time of about 100ms for upshifts and 150ms for downshifts without acceleration flatlining is the desired output. The developed system should be usable on any similar engine with a sequential gearbox by making small modifications to the GCU code and actuator force. The system could also be used in autocross vehicles for reduced gear-shift times and increased driver concentration, leading to better lap-times. Copyright © 2016 SAE International.