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The regulation law used in the drive ratio-changing process of certain type of present mechanical continuously variable transmission was presented and its operation performance studied. The disadvantage of this type of transmission was analyzed followed by proposing a dual parameter drive ratio regulation law. The vehicle equipped with mechanical CVT (continuous variable transmission) with dual-parameter regulation law applied was modeled and simulated under MATLAB/Simulink environment. After comparative analysis, the application of dual parameter regulation law on mechanical CVT was practicable and improvement of vehicle performance resulted from this approach was proved. The dual parameter regulation law presented in this paper could help to optimize vehicle performance, improve drive comfort and develop vehicle energy-saving technology.