Purpose of the study: The objective of this research was aiming at understanding the effect of hybrid cars on the environment. The research was also aimed at proposing a government policy that must be implemented to regulate the usage of hybrid vehicles. Design/Methodology: An analysis of the hybrid cars was carried out along with evaluating the advantages and disadvantages of said vehicles from the perspective of customers, support and maintenance. The study was based on a product substitute, introduced to replace vehicles that run on gasoline, with a hybrid of electric and gasoline vehicles. Findings: The result after testing the vehicles and its components is that Hybrid Electric Vehicles (HEV) does is indeed less harmful to the environment due to it consuming less gasoline. With increasing production of hybrid variants, batteries are being planned and designed in way that extends its life as well as provides the ability of recycling. This turns to be safer, healthier and also a money saver package, saving a fine amount spent on fuel. Research Implications: The researchers hope to achieve a clear understanding of the influence of hybrid cars on the environment and individuals, the way hybrid cars operate, its advantages and disadvantages and the proposed government policy that will regulate the impact of hybrid cars on the environment. Originality: The study is of its first kind and no one has carried out such study ever before in Oman Purpose of study.