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Electrical vehicles (EVs) are gaining more attention due to its environmental friendly approach. However, growth is limited by consumer mindset and its high initial cost in developing countries. In a country like India, the majority of the vehicle running on the road are fossil fuel based and it does not comply with emission norms. Conversion of the conventional vehicle (CV) into the plug-in hybrid electric vehicle (PHEV) is promising option to reduce environmental impact of present vehicles running on the road towards sustainable transportation. However, limited by conversion complexity and economics. The paper discusses costing trends of electric powertrain components and cost analysis for conversion. A diesel engine car converted to parallel PHEV is used for study with 70 bhp engine for 60 km range. In-depth cost analysis is presented for conversion. Two different scenarios are considered for calculation with a current and futuristic timeline and its implications are presented in detail.