The HCV project aims to develop urban buses and delivery vehicles with advanced second generation of energy efficient hybrid electric powertrains in line with objectives in topic SST 2008.3.1.5. The final result will be the demonstration of a passenger bus and a distribution truck with this advanced technology. In addition early second generation buses and distribution trucks will be demonstrated in practical real-life conditions in different cities in the enlarged Europe in order to ensure good acceptance by public transport, delivery operators, drivers and passengers.Research, development and demonstration will be made of innovative e-drives, energy storage technologies as well as auxiliary components. In addition lightweight body technologies will be demonstrated. The decision to start vehicle production with advanced second generation technology will to a high degree be based on the outcome of the project.