With ever increasing oil prices and concerns for the natural environment, there is a fast growing interest in electric vehicles (EVs). However, energy storage is the weak point of the EVs that delays their progress. For this reason, a need arises to build more efficient, light weight, and compact electric propulsion systems, so as to maximize driving range per charge. There are basically two ways to achieve high power density and high efficiency drives. The first technique is to employ high-speed motors, so that motor volume and weight are greatly reduced for the same rated output power. However, mechanical losses are incurred by the clutch, reduction and differential gears, during power transmission from the motor to the wheels. With such driveline transmission, losses amount up to 20% of the total power generated (Jain & Williamson, 2009). A more attractive solution involves employing high-torque, low-speed motors (around 1000rpm); which can be directly mounted inside the wheel, known as in-wheel motors or hub motors. By applying wheel motors in EVs, power transmission equipment can be eliminated. Therefore, transmission losses are minimized and operating efficiency is improved (Chau et al., 2008). The basic requirements of wheel motors are large starting torque, overload capability, wide speed range, and high power density in order to reduce motor weight. A low motor weight is essential when the motor is fitted inside the wheel to reduce un-sprung mass, thus maintaining the quality of road holding. Hence, high efficiency/weight ratio is required for a wheel motor. Considering these requirements, several types of motors have been reported in literature for use as an in-wheel motor: Induction motor, Permanent Magnet Brushless motor and switched reluctance motor (Emadi, 2005; Jain & Williamson, 2009). Amongst these solutions, PM Brushless motors might play a major role in the future development of in-wheel applications, because of its high power density and efficiency, smooth torque, and simple control drive. The PM Brushless motor has either a trapezoidal-wave or a sine-wave Back-EMF. In the trapezoidal-wave motor, cheap Hall-effect sensors are used to control commutation. The interaction between the fed trapezoidal-wave current and magnetic field, produces more frequency harmonics and a larger torque ripple. In the PM Brushless motor with sinusoidal Back-EMF a continuous rotor position sensor is indispensable. In addition to commutation purposes, this measurement is used to eliminate the problems associated with the