<p>Global commercial vehicle industry is observing a significant shift towards green and sustainable solutions as regulations are being enforced to reduce the environmental impact of vehicle emissions. In this context, the commercial vehicle industry is developing hybrid Internal Combustion Engine (ICE) vehicles. The key component of the hybrid vehicle is fuel cell, powered by hydrogen, is a reliable and robust hydrogen storage mechanism which is critical for its widespread adaptation and success in the market. Because of its low-density, hydrogen needs to be stored at high pressure typically around 700&#xa0;bar as operating pressure and the burst pressure will be 2 times of its operating pressure. To withstand this high-pressure, the composite tank made of carbon fiber will be a suitable solution, as they offer superior strength to weight ratio compared to the metal tanks. Such a Carbon Fiber tank, which is an indispensable part of the hydrogen storage mechanism has a significant contribution in the system cost. Hence, reducing the Carbon Fiber Reinforced Plastic (CFRP) tank cost, by optimizing the design parameters is critical for the product being commercially viable in the marketplace. In this context, this paper deals with the design process of a CFRP type 3 hydrogen tank which has an operating pressure requirement of 700&#xa0;bar and burst pressure of 1400&#xa0;bar for commercial vehicle application. Also, the simulation methodology used to model CFRP material is discussed along with the various evaluation criteria used to predict burst pressure at which failure will occur. The design parameters which are optimized are the number of carbon fiber layers required, fiber thickness, orientation of the carbon fiber strands, and the stacking sequence with the aim to keep the overall system cost to a minimum.</p>