Nowadays, the internal combustion engine in vehicles is being replaced by electric motors, giving way to the electric vehicle, which results in reduced environmental impact, higher efficiency and lower emission of greenhouse gases. The powertrain of an electric vehicle is its most prominent subsystem, with the batteries and traction inverter being key components. Thus, due to their relevance, advances in the design of both components are of paramount importance. In this paper, the potential benefits achieved through a powertrain design approach based on combining a modular battery bank with multilevel NPC traction inverter topologies were analyzed, in comparison to a conventional two-level powertrain design. Several aspects were analyzed: modularity, complexity, battery-pack state-of-charge balancing, inverter loss, motor ac voltage harmonic distortion, motor common-mode voltage and reliability. Particularly, from the comparison study developed under the selected design scenario, the proposed design approach, based on modular battery packs and multilevel technology, shows a potential reduction of up to 55% in inverter losses, up to 65% in motor ac-voltage total harmonic distortion, and up to 75% in rms common-mode voltage.