The operation of an electrically peaking hybrid vehicle (ELPH) can be divided into two basic modes. • Constant or cruising speed mode in which a small internal combustion engine (ICE) is used to power the vehicle. • Peak power mode in which the combination of an electric motor and ICE is used to supply peak power for acceleration and limited-duration steep hill climbing of the vehicle.A method, by which the engine size and the speed reduction ratio from the engine to drivewheels can be developed based on the cruising mode, is presented in this paper. The electric motor power rating and the motor gear ratio to the drive wheels can then be determined, based on the acceleration and gradeability. The results show that a simple single-gear transmission would be a good selection for overall performance.