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This paper describes the performance evolution and key breakthroughs of the world's first one-motor two-clutch (1M2CL) parallel full hybrid system without a torque converter that was developed and implemented on a hybrid luxury sedan in November 2010. The high potential of this hybrid system was brought out further to improve fuel economy without sacrificing acceleration performance. The resultant second generation of the 1M2CL parallel full hybrid system was applied to a hybrid premium sports sedan in August 2013. In order to improve these performance attributes, the following key technical measures were adopted: 1 Motor torque during the EV mode was increased to expand the EV drive region. 2 Maximum motor torque and battery power at engine startup were boosted to reduce the engine start time. 3 Integrated control of the motor and clutches was improved. 4 Mechanical efficiencies were improved for higher fuel economy.