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The higher levels of fuel consumption and emission contribution of low powered two-wheelers especially in urban areas need more attention in order to improve air quality and sustainability of transportation energy. Recently, plug-in hybrid technology has been emerged as one of the promising alternative to reduce petroleum consumption and emission reduction. However, the all-electric range plays a significant role in sizing of battery pack, to reduce fuel consumption and there by reduction of urban pollution to a large extent. This paper discusses the modeling and simulation of plug-in hybrid electric two-wheeler using MATLAB software with reference to Indian driving cycle. The simulation results reveal the influence of driving range in sizing of battery pack and battery cycle life on cost of battery pack. The simulation also helps to evaluate the power and energy requirements of plug-in hybrid electric two-wheeler for varying all-electric ranges and battery types.