The first hybrid was built over a hundred years ago - the Mixte built by Porsche. The Mixte even won a car rally. It used a gasoline engine to power a generator which ran an electric motor.
Dual-fuel vehicles were not uncommon in the 1930s and 40s. Many buses and other heavy transport vehicles had systems which allowed them to run on petrol or diesel.
Most modern hybrids are HEVs - Hybrid Electric Vehicles.
The technology to power the hybrids of today really began in the 1970s. Victor Wouk is usually seen as the "Godfather" of the hybrid car after he developed a hybrid drive-train for a Buick. Progress stalled when the US EPA ditched the Federal Clean Car Incentive Program in the mid seventies.
The next technical innovation which was crucial to modern hybrid design was the regenerative braking system. Regenerative brakes harvest electrical energy from the process of braking. The energy is used to recharge the battery and reduce fuel consumption. David Arthurs developed the first one in the mid 1970s. He was able to reach 78mpg in a modified Opel GT sports car.
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