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The TC48 project is developing a state-of-the-art, exceptionally low cost, 48V Plug-in hybrid electric (PHEV) demonstration drivetrain suitable for electrically powered urban driving, hybrid operation, and internal combustion engine powered high speed motoring. This paper explains the motivation for the project, and presents the layout options considered and the rationale by which these were reduced. The vehicle simulation model used to evaluate the layout options is described and discussed. The modelling work was used in order to support and justify the design choices made. The design of the vehicle's control systems is discussed, presenting simulation results. The physical embodiment of the design is not reported in this paper. The paper describes analysis of small vehicles in the marketplace, including aspects of range and cost, leading to the justification for the specification of the TC48 system.