A global shift towards a greener and low carbon footprint will require noteworthy improvements in the manner in which energy is being produced and utilized. With the boom in passenger vehicle market in automotive industry, the transformation into systems which are more cost effective and fuel efficient, are apparently the need of the hour. Among the ‘Clean’ technologies, Hybrid Electric Vehicles (HEV) are on the top of the list of options. The paper presents in detail the survey of relevant prospects of HEV in the Indian market and how the Indian OEMs have responded to this opportunity. Series, parallel, parallel electric assist and combined hybrid electric systems are evaluated and the viable solutions are proposed. A broad study has been conducted on the various strategies and methodologies for implementation through the HEV. It also elucidates the design criteria and optimization techniques with reference to the relevant driving cycles. The various configurations are simulated in ADvanced VehIcle SimulatOR (ADVISOR), which is based on MATLAB /SIMULINK program with relevant driving cycles. Fuel economy and emission levels have been emphasized in result interpretation. The cost effective and time saving simulation results can be used to select the best hybrid configuration for Indian conditions and can be used to carry out experimental investigation. The role of legislation is also discussed for future roadmap to gear up for the Hybrid Technology in the national perspective.