Off-road traction applications require extremely high torque, especially, at low speeds. Such a high torque can be reached by gearing up the torque of an electrical machine. A tooth-coil permanent magnet synchronous machine with an integrated planetary gear is proposed as a solution for heavy off-and on-road traction applications. The key benefits of tooth-coil permanent-magnet synchronous machine (PMSM) in the proposed drive system and its integration with a planetary gearbox are explained in detail. A multi-objective optimization is performed to determine the slot/pole combination of the PMSM and the design process of the proposed drive system is entirely clarified. The proposed tooth-coil PMSM is investigated by electromagnetic and structural finite element analysis to obtain the final design and highlight the machine performance. A prototype is built to validate the proposed system. The results show that the traction drive system works well in laboratory and offers means to serve as a traction system in heavy off- and on-road applications.