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An experimental ultra lightweight compact vehicle named “the Waseda Future Vehicle” has been designed and developed, aiming at a simultaneous achievement of low exhaust gas emissions, high fuel economy and driving performance. The vehicle is powered by a dual-type hybrid system having a SI engine, electric motor and generator. A high performance lithium-ion battery unit is used for electricity storage. A variety of driving cycles were reproduced using the hybrid vehicle on a chassis dynamometer. By changing the logics and parameters in the electronic control unit (ECU) of the engine, a significant improvement in emissions was possible, achieving a very high fuel economy of 34 km/h at the Japanese 10-15 drive mode. At the same time, a numerical simulation model has been developed to predict fuel economy. This would be very useful in determining design factors and optimizing operating conditions in the hybrid power system.