How it Works
A hybrid car contains both an internal combustion
engine and an electric battery that work together to power the
car's movement. The combustion engine typically runs on gasoline. There
are two common hybrid designs: series and parallel (see diagram
below). In a series hybrid, the combustion engine powers a generator
that charges the battery. The battery then powers an electric
motor that turns the wheels of the car, possibly via the transmission. In
a parallel hybrid, the combustion engine and the battery both power
the movement of the wheels independently via a clutch and the transmission. In
both designs the battery is connected to an electric motor that
can both draw power from the battery and feed power back into it
in order to recharge it. The combustion engine also can feed power
into the battery to recharge it, either through a generator in
the series design or through a clutch in the parallel design. In
the series design only the battery provides propulsion power to
the wheels, whereas in the parallel model both the combustion engine
and the battery can power the wheels. In a series hybrid the combustion
engine is usually located in the rear of the car, and in a parallel
it is usually in the front.

Picture courtesy of http://avt.inel.gov/whathev.html
The following diagram shows the placement of the standard general
components in a hybrid car.

Picture courtesy of http://www.ott.doe.gov/hev/components.html
Souces:
http://avt.inel.gov/whathev.html
http://www.howstuffworks.com/hybrid-car2.htm
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