Drive mode D1 vs M
The Sx and Cx(S1,C1 etc.) modes shift into the next gear precisely at redline. So if you are in S1, you will shift to the second gear at redline. I think in the old cars with D1,D3, etc, you stayed within 1 and that gear as CoolBDPhenom mentioned above.
Yes, you will hit the rev limiter in M, which will end up killing your throttle for a few moments. In some cars (like my Lotus), the rev limiter bounces at the redline so it keeps you going, but in our cars, the throttle is totally killed for what seems like an eternity. Not a very pleasant feeling as it throws you forward. Also, because of the laggy shift response, it is hard to shift at redline in M as you have to take the lag into account and shift before you reach redline. Some practice is needed to get the shifts right.
The Sx and Cx(S1,C1 etc.) modes shift into the next gear precisely at redline. So if you are in S1, you will shift to the second gear at redline. I think in the old cars with D1,D3, etc, you stayed within 1 and that gear as CoolBDPhenom mentioned above.
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The difference between S and C is the duration of the shifts and how aggressively the upshifts happen. S shifts are faster than C shifts, and S upshifts later than C. Also, if you are not in C1 (i.e. you're in C2+ or regular C mode), you will start in the 2nd gear from a stop.



