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Hybridization of vehicle drive train is an important step to increase energy security, reduce crude oil import, improvement of air quality and GHG reduction. Heavy traffic congestion poses a great challenge in improvement of fuel economy. Nowadays urban climatic condition forces the passenger to keep air-conditioning (AC) on; thus further decreasing the fuel economy. In a typical urban drive; the vehicle commutes with low speed forcing IC Engine to run in its low efficiency operational points. Further it is characterized by frequent start-stop and crawling. It has been observed that the power consumption for AC is comparable to that required for the vehicle propulsion. Hence the AC on condition with propelling vehicle demands higher power from engine creating a challenge for fuel economy improvement.