The performance of the vehicle power system for multi-mode hybrid electric vehicle (M-MHEV) can be improved through meticulous parameter matching and optimization. This paper developed the powertrain parameter design and dynamic performance calculation program based on the structure design, parameter matching calculation, and powertrain system selection. A HOQM of M-MHEV is formulated to ascertain the weight coefficient of vehicle performance indicators according to different regional requirements and a parameter matching and optimization method for power system, employing the Particle Swarm Optimization (PSO) algorithm, is suggested to assess and harmony the vehicle’s performance. Firstly, a house of quality model of M-MHEV is constructed to ascertain the weight coefficient of vehicle performance indicators derived from different regional demands. Additionally, a method is introduced for optimization of power system parameters of M-MHEV based on regional demand, the PSO algorithm is employed to optimize the characteristic parameters. And sensitivity analysis of characteristic parameters is conducted relying on user needs in different regions. The simulation results show that users in the northern and southern regions have different final weight coefficients for vehicle performance indicators and the parameters not only exert a substantial individual influence but also exhibit an interaction effect on the vehicle performance. Finally, a series of comparative simulations, are carried out with two optimization parameters respectively, the simulation outcomes demonstrate that the solution obtained through optimized design parameters solution could markedly enhance the technical parameters of the vehicle. The efficacy and viability of the proposed method based on user needs in different regions are verified. The conclusion provides a useful reference for differentiated design.