To analyze the correlation between drivetrain systems and to optimize the vehicle design with satisfying of the initial design objects, the performance sensitivity analysis through the iterative design procedure must be carried out. In this study, effects of the design parameters for the main components of the parallel type hybrid drivetrain system are analyzed by using the developed method of the vehicle performance simulation, and the basis of the optimal selection of the design parameters from the relation of design constraints and required performances is suggested. In driving control of the parallel hybrid vehicle, power split ratio is the most important factor, and the improved drivetrain system can be constructed through the only change of the algorithm for determination of the power spilt ratio, which is strongly applicable to the driving patterns and the environments. Therefore, Various techniques, such as the change of the weighting factors and the range extended algorithm, are suggested and evaluated in this paper.