Plug-in Hybrid Electric vehicle (PHEV) technology has the potential to reduce operational costs, greenhouse gas (GHG) emissions, and gasoline consumption in the transportation market. However, the net benefits of using a PHEV depend critically on several aspects, such as individual travel patterns, vehicle powertrain design and battery technology. To examine these effects, a multi-objective optimization model was developed integrating vehicle physics simulations through a Matlab/Simulink model, battery durability, and Canadian driving survey data. Moreover, all the drivetrains are controlled implicitly by the ADVISOR powertrain simulation and analysis tool. The simulated model identifies Pareto optimal vehicle powertrain configurations using a multi-objective Pareto front pursuing genetic algorithm by varying combinations of powertrain components and allocation of vehicles to consumers for the least operational cost, and powertrain cost under various driving assumptions. A sensitivity analysis over the foremost cost parameters is included in determining the robustness of the optimized solution of the simulated model in the presence of uncertainty. Here, a comparative study is also established between conventional and hybrid electric vehicles (HEVs) to PHEVs with equivalent optimized solutions, size and performance (similar to Toyota Prius) under both the urban and highway driving environments. In addition, breakeven point analysis is carried out that indicates PHEV lifecycle cost must fall within a few percent of CVs or HEVs to become both the environmentally friendly and cost-effective transportation solutions. Finally, PHEV classes (a platform with multiple powertrain architectures) are optimized taking into account consumer diversity over various classes of light-duty vehicle to investigate consumer-appropriate architectures and manufacturer opportunities for vehicle fleet development utilizing simplified techno-financial analysis.