Cost is one of the key parameters of electric machines designed for automotive applications. In order to keep manufacturing cost low, it is desirable to estimate the manufacturing cost of the machine in the early stages of the design process. For this purpose, a costing algorithm for mass production of induction machines is proposed. The case study examines the impact of variations in dimension (stack length and bore diameter) of the input design on cost outputs, in order to validate the base structure of the algorithm. The overall aim of this work is to provide cost optimization of the machine design by implementation into a design optimization routine.I.