Methanol-hydrogen electric vehicles (MHEVs) represent a new energy vehicle (NEV) category utilizing methanol as a hydrogen carrier, addressing issues like range anxiety and charging challenges. By converting methanol into hydrogen through a reforming system, MHEVs power fuel cells for electricity, offering a clean alternative to ICEVs. The article delves into the technical principles of methanol reforming for hydrogen production and hydrogen fuel cell power generation, highlighting the efficiency and cleanliness of this approach. The manufacturing costs of MHEVs are slightly higher than ICEVs due to the costs of reformers and fuel cells, but the industry is focusing on cost reduction strategies through localized production and technological advancements. Moreover, the usage costs of MHEVs are significantly lower than diesel vehicles, providing substantial fuel cost savings for commercial applications. To address technical challenges like low-temperature start-up, system durability, and hydrogen purity assurance, optimization strategies and coating technologies are being implemented to enhance efficiency and reliability in MHEVs. Overall, MHEVs offer a promising solution to reduce energy costs and contribute to sustainability efforts in the transportation sector.