This study addresses the persistent issue of energy inefficiency in vehicle engines, where only about 30% of the fuel's energy is utilized for power, with 62.4% heat loss. To mitigate this energy loss, we propose a thermoelectric power generation system recovering waste heat from hybrid vehicle exhausts. The system employs thermoelectric modules (TE modules) that convert thermal energy directly into electrical energy via the Seebeck effect. To enhance the efficiency of heat transfer within the TE system, we integrate heat pipes, which are optimal for efficient heat transfer. The designed system features ten heat pipes attached vertically to the exhaust pipe to maximize the heat transfer area. We conducted both experimental and simulation studies to evaluate the impact of various parameters on the system's power output. Thermal analysis software was used to model and predict the performance of the thermoelectric generator, analyzing variables such as conduction, contact resistance, and boundary temperatures. The simulation results aligned with our expectations, demonstrating the system's effectiveness in harnessing exhaust heat to generate electricity. This research highlights the potential of thermoelectric technology combined with heat pipes to significantly improve energy efficiency in hybrid vehicles.