Yes, it does -- why else would the endurance racing world be embracing hybrid technology? A hybrid car has won Lemans for the last 5 years. At least with the

Yes, it does -- why else would the endurance racing world be embracing hybrid technology? A hybrid car has won Lemans for the last 5 years. At least with the Prius-style hybrids, though, regenerative braking isn't the only advantage: * The engine is an Atkinson cycle, which has better thermal efficiency than a typical Otto cycle engine. * The electric motor is providing torque off the line, so there is no need for a torque converter (which reduces efficiency). * The engine can be completely shut off when cruising at low speeds. * The power split device (PSD) is more reliable than a traditional transmission, reducing maintenance costs over the lifetime of the vehicle. (it is much less labor intensive to replace the battery than to service the transmission) The advantages add up when driving around town, but at highway speeds, a 3-cylinder or small 4-cylinder non-hybrid will often have better gas mileage.