There is huge amount of KE released from a vehicle while continuous braking and moving along a busy city, that increases rate of fuel consumption. In order to utilize that kinetic energy Regenerative braking system technology is highly recommended as it can be operated with reversing electric motors which can drive a vehicle. This can work as a generator which gives back energy to the EV and help to refill a bit of scope. This little enhancement in a battery capacity can increase overall efficiency in near future with frequent use. This project shows a MATLAB simulative analysis on the working of regenerative braking system in an electric vehicle having Lithium-ion batteries, where as a result we obtained a higher output torque which can be saved and utilized further to increase fuel efficiency by 9-18% in parallel regenerative braking.