A hybrid vehicle having an internal combustion engine, a generator connected with an output shaft extending from the internal combustion engine, an electric motor axially aligned with the output shaft, an output gear assembly connected to an output shaft driven by the rotor of the electric motor and positioned between the generator and the electric motor, a clutch adapted to connect and disconnect the generator to/from the output gear assembly, a differential gear unit, and a counter shaft oriented in parallel the output shaft driven by the rotor.