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The reduction of CO₂ emissions represents a major goal of governments worldwide. In developed countries, approximately 20% of the CO₂ emissions originate from transport, one third of this from commercial vehicles. CO₂ emission legislation is in place for passenger cars in a number of major markets. For commercial vehicles such legislation was also already partly published or is under discussion. Furthermore the commercial vehicles market is very cost sensitive. Thus the major share of fuel cost in the total cost of ownership of commercial vehicles was already in the past a major driver for the development of efficient drivetrain solutions. These aspects make the use of new powertrain technologies, specifically hybridization, mandatory for future commercial powertrains. While some technologies offer a greater potential for CO₂ reduction than others, they might not represent the overall optimum with regard to the total cost of ownership.

Further fuel efficiency improvements are mandatory in order to achieve the CO2 emission limits envisaged in the future. Electrification of the powertrain is seen as one of the key technologies to achieve these future goals. However, electrification of the power train typically goes with a massive cost increase of the overall system itself which is especially crucial for cost sensitive markets like India. AVL's approach to cost reduction for comparable performance and fuel consumption target values is an integration of functions. This paper demonstrates that, through a deeper interaction of the single powertrain components, further fuel efficiency optimization may be gained. System optimization at a powertrain level enables the achievement of future powertrain targets with respect to fuel efficiency and performance with only minimal and reduced requirements at a component level (i.e. combustion engine, electric drive, transmission and battery).