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This paper systematically discussed the design and control methodology of plug-in hybrid electric vehicle (PHEV). Design methodology focused on battery energy and power capacity design. Two lands of typical batteries-NiMH and Li-ion have been discussed. Control strategies focused on all electric range (AER) and charge depletion range (CDR) operations. Also, a constrained engine on and off control strategy has been discussed for charge sustained operation. Simulation has been performed for an example passenger car. The simulation results indicate that significant amount of fuel can be displaced by electric energy in typical urban driving.