The present invention describes an electric vehicle with hybrid drive system, which provides optimization of speed, power and maximizing efficiency levels. In one embodiment, the vehicle includes at least one driven wheel, an electric motor connected to the driven wheel through a fixed transmission system or a continuous variable transmission (CVT) unit, an internal combustion engine (ICE) connected to the driven wheel through a fixed transmission system or a CVT unit and a selector switch to select the modes of power supply to the electric vehicle. Further, the electric motor is powered by a battery power pack and the ICE is powered by a hydrocarbon fuels stored in a hydrocarbon fuel tank. Furthermore, the different position of selector switch provides different modes of the power supply to the vehicle. In another embodiment, the electric motor is adapted to be operated as a generator.