This study addresses the impact of an actual drive pattern on the sizing and cost of a battery pack for a plug-in hybrid electric two-wheeler. To estimate the daily average travel distance in fixing the all-electric range of two wheelers, a study conducted in Coimbatore city is presented. A MATLAB simulation model developed for estimating the energy and power requirements in an all-electric strategy using an Indian driving cycle (IDC) and a real-world driving pattern are discussed. The simulation results reveal the impact of the real-world driving pattern on energy consumption and also the influence of all-electric range in sizing the battery pack. To validate the results, a plug-in hybrid electric two-wheeler developed by modifying a standard two-wheeler has been tested on the road with the help of the IDC simulator kit. An annual battery cost comparison shows that nickel–metal-hydride batteries are more economical and suitable for in plug-in hybrid electric two-wheelers.