A 'gasoline-electric hybrid car' or 'hybrid electric vehicle' is a vehicle which relies not only on batteries but also on an internal combustion engine which drives a generator to provide the electricity and may also drive a wheel. It has great advantages over the previously used gasoline engine that drives the power from gasoline only. It also is a major source of air pollution. The objective is to design and fabricate a two wheeler hybrid electric vehicle powered by both battery and gasoline. The combination of both the power makes the vehicle dynamic in nature. It provides its owner with advantages in fuel economy and environmental impact over conventional automobiles. Hybrid electric vehicles combine an electric motor, battery and power system with an internal combustion engine to achieve better fuel economy and reduce toxic emissions. In HEV, the battery alone provides power for low-speed driving conditions where internal combustion engines are least efficient. In accelerating, long highways, or hill climbing the electric motor provides additional power to assist the engine. This allows a smaller, more efficient engine to be used. Besides it also utilizes the concept of regenerative braking for optimized utilization of energy. Energy dissipated during braking in HEV is used in charging battery. Thus the vehicle is best suited for the growing urban areas with high traffic. Initially the designing of the vehicle in CAD, simulations of inverter and other models are done. Equipment and their cost analysis are done. It deals with the fabrication of the vehicle. This includes assembly of IC Engine and its components. The next phase consists of implementing the electric power drive and designing the controllers. The final stage would consist of increasing the efficiency of the vehicle in economic ways.