Vehicles, urban transport and environment sustainability are interrelated. It is agreed that internal combustion engine contribute considerably to climate change due to fossil fuel consumption. This dissertation investigates the relationship between vehicles, especially electric vehicles, environment sustainability and urban transport system using causal loop diagrams. Further, multi-criteria decision analysis is performed to compare fuel vehicles and electric vehicles and selects suitable vehicles for urban environment sustainability. Conclusion suggests that for city road travel needs, battery electric vehicles generate less emission and consume less energy, although travel distance is much shorter. In addition, recommendations contain increase energy efficiency and engine technology is urgent. Government should subsidise more on public transport and more green travel patterns. For individuals, reducing use of vehicles especially fuel vehicles will definitely improve the environment in cities.