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A concept of “driving situation awareness”-driven energy management system for parallel hybrid electric vehicles (HEVs) is introduced. The essential feature of the proposed energy management system is to assess the driving environment (in terms of facility type combined with traffic congestion level) using long and short term statistical features of the drive cycle. Subsequently, this knowledge is provided to a system that makes intelligent decisions with respect to the torque distribution and charge sustenance tasks. Simulation work was carried out for the validation of proposed system, and the results reveal its viability for energy management of parallel hybrid vehicles.