A hybrid system combining a 4-stroke, 50cc-gasoline-engine with an electric motor was developed, and the maximum vehicle speed achieved by the electric motor is 30 km/h. Either an electric motor or engine is selected as the power source according to the running condition, and it is switched automatically. A parallel hybrid system, the Modulated Hybrid System (MHS), was adopted. Therefore, the energy source of the electric motor can be charged by an external or an internal power source. The switch mechanism of the driving power source is simple by using a one-way-clutch. The driving force, the vehicle speed, and the remaining battery energy are the parameters for switching control of the driving power sources. In order to achieve smooth switching and quick responses, the electric motor output is controlled by the feedback of the driving torque. By using the switching mechanism with the one-way-clutch, and the driving torque feedback, a good acceleration performance and controllable driving power were obtained.