The RAV4 EV is a genuine electric vehicle designed for the most practical use in both city and highway traffic. It incorporates a new Nickel-Metal Hydride (Ni-MH) battery, which offers a driving range of over 200 km. To ensure its market adaptability in areas of the world, we has started two-year monitoring programs since the end of 1995 in several cities of Japan and the United States of America. The initial test results brought us great belief in its progressed performance in real market application. This paper outlines the resign concept of the vehicle system, aimed at minimizing its energy consumption and maximizing battery life, and also describes the results of the monitoring tests and fmdings on the following issues.