The working principle and dynamic characteristics of the range extender hybrid electric vehicle system are first explored. In the second phase, concept and simulation concerns the major part of this work, to develop the rotary internal combustion engine in the AVL Boost engine simulation software to evaluate the fuel consumption. The developed engine is implemented and adapted as a component of the electric vehicle using AVL Cruise driveline simulation software. The rotary internal combustion engine is connected with a generator to create the range extender system. The dynamic model with the configuration of a range extended hybrid electric vehicle is simulated over the New European Driving Cycle (NEDC) driving cycle where the fuel consumption, state of charge of the battery, range of the vehicle is evaluated. Finally, the simulation results in the virtual environment were evaluated and presented. Range extended hybrid vehicles are alternative solutions with comparable performance to electric vehicles.