Most motor vehicles have historically utilized Internal Combustion Engines powered by a fossil fuel. Despite the technological advancements in fuel-efficient engines, further improvements are required to reduce the effect of fuel costs and global warming. This study models and simulates Hybrid Electric Vehicles (HEVs) to evaluate their potential for fuel cost savings and emissions reduction compared to traditional vehicles. Using MATLAB® version R2023a Update 5 (9.14.0.2337262) Simulink version 10.7 (R2023a) and the Advanced Vehicle Simulator (ADVISOR) version 2003-00-r0116, the research examines Series and Parallel HEV configurations. The simulation explores various battery configurations, engine capacities, and power unit models to analyze their impact on energy utilization. The data, collected from the simulations, show significant fuel savings and emissions reduction with HEVs. The Parallel HEV configuration consistently saves fuel with fewer battery modules, while the Series HEV configuration performs better but requires more modules to maintain the system’s State of Charge.