In Toy car,
DC motor rotation speed is high but torque is less, so it is difficult for motor to give initial acceleration when toy is at stationary position. So, from input motor to output wheel, gear is connected in between to provide high initial torque at low speed.
Hence, toy accelerate fast from stationary position.
In watch.
Rotation period of different hand is different, and accuracy and preciseness is needed. Hence using gear ratio method, second hand rotation speed will be controlled by the rotation speed of minute hand and hour hand.