A new concept of an electromagnetic torque converter for hybrid electric vehicles is proposed. The electromagnetic torque converter, which is an electric system comprised of a set of double rotors and a stator, works as a high-efficiency transmission in the driving conditions of low gear ratio including a vehicle moving-off and as a starting device for an internal combustion engine. Moreover, it can be used for an electric vehicle driving as well as for a regenerative braking. In this concept, a high-efficiency drivetrain system for hybrid electric vehicles is constructed by replacing a fluid-type torque converter with the electromagnetic torque converter in the automatic transmission of a conventional vehicle. In this paper, we present the newly developed electromagnetic torque converter with a compact structure that enables mounting on a vehicle, and we evaluate its transmission efficiency by experiment. Furthermore, using the experimental results and finite element analysis of the electric machine, we clarify the system loss of the electromagnetic torque converter.