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In hybrid electric vehicle (HEV) design and operation, no parameter plays a more important role than efficiency. Unlike conventional vehicles, HEVs are generally energy and power limited by the battery bank and auxiliary power unit. As a result, the overall system efficiency in the conversion of chemical or stored energy into kinetic energy of the vehicle is the key parameter that drives the overall system design. We have undertaken a sensitivity analysis of HEVs to understand in detail the various factors and their respective weights that affect the overall system efficiency. Our goal is to identify the parameters that most significantly influence vehicle efficiency. The results of this study may be used as a guide to focus work on the areas of most benefit for HEVs as well as aiding in sizing vehicle components for maximum efficiency.