In this study, inverse differential gear and power mode switching control were used to develop a hybrid electric motorcycle (HEM). An inverse differential gear power splitter was installed to integrate or distribute the power of an internal combustion engine (ICE), thus achieving single/dual power output. In addition, the transmission system was configured with continuously variable transmission to adjust the transmission speed reduction ratio and stabilize the power output. As a result, three power modes (i.e., the motor drive mode, ICE drive/generator mode, and dual power drive mode) could be switched between each other smoothly. Finally, our HEM was tested by a chassis power gauge. The test results showed that the HEM consumed 41.1% less fuel and produced 58.6% less exhaust emissions compared with conventional ICE motorcycles. In terms of controllability, the acceleration time for 0–100 m was 2.4 s less than the Taiwan E-scooter Standard (TES). The fastest highest vehicle speed was 2.1 times greater than the test of the TES.