Understanding the life-cycle private cost (LCPC) of the hybrid electric vehicle (HEV) is important for market feasibility analysis. An HEV LCPC model was established to evaluate HEV market prospects in China compared with traditional internal combustion engine vehicles (ICEV). The Kluger HV, a full-hybrid HEV sports utility vehicle (SIN), aimed at the Chinese market, was simulated as the 2010 model's technology details were well publicized. The LCPC of the Kluger HV was roughly the same (about 1.06 times) as that of its comparable ICEV (Highlander SUV). This aligns with other compact and midsize HEV cars (e.g., Toyota Prius, Honda Civic and Toyota Camry HEV) in China. With oil prices predicted to rise in the long-term, the advantage of HEVs energy saving will partly compensate the high manufacturing costs associated with their additional motor/battery components. Besides supporting technology development, enabling policy should be implemented to introduce HEV technology into taxi fleets and business cars. This technology's cost-competitiveness, compared with traditional ICEVs, is advantageous for these higher mileage vehicles. (C) 2012 Elsevier Ltd. All rights reserved.