Energy consumption and exhaust emissions of hybrid electric vehicles (HEVs) strongly depend on the HEV topology, power ratios of their components and applied control strategy. Combined analytical and simulation approach was applied to analyze energy conversion efficiency of different HEV topologies. Analytical approach is based on the energy balance equations and considers all energy paths in the HEVs from the energy sources to the wheels and to other energy sinks. Simulation approach is based on a fast forward-facing simulation model for simulating parallel and series HEVs as well as for conventional internal combustion engine vehicles, and considers all components relevant for modeling energy conversion phenomena. Combined approach enables evaluation of energy losses on different energy paths and provides their impact on the fuel economy. it therefore enables identification of most suitable HEV topology and of most suitable power ratios of the components for targeted vehicle application, since it reveals and quantifies the mechanisms that could lead to improved energy conversion efficiency of particular HEV. The paper exposes characteristics of the test cycles that lead to improved energy conversion efficiency of HEVs. Mechanisms leading to improved fuel economy of parallel HEVs through drive-away and vehicle propulsion at low powertrain loads by electric motor are also analyzed. It was also shown that control strategies managing energy flow through electric storage devices significantly influence energy conversion efficiency of series HEVs. (C) 2009 Elsevier Ltd. All rights reserved.