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Vassilis Papanikolaou built this Motorcycle Gear Indicator Project that uses hall effect sensors to detect the movement of the shift pedal. The end project was put into a nice looking case and mounted in a way that it looks stock. The sensor was encapsulated in epoxy to keep the weather out. Most new vehicles have this type of indicator built in but if not this is a nice way of enhancing your ride.
“The main circuit is based on an AVR ATTINY25/45/85 microcontroller, which reads the signals of the two Hall sensors and the neutral switch and outputs the current gear number to a 7‑segment LED indicator, through a 4026 counter/decoder.“
 