This paper presents a method to extend the DC bus utilization on an induction motor (IM) by using a combination of Space-Vector Modulated Direct Torque Control (DTC–SVM) and conventional DTC. The scheme proposed in this paper exploits the advantages of both control methods. During the linear region, it allows for a low torque ripple and low current harmonic distortion (THD). During the overmodulation region, it allows for the fastest torque response up to the six-step operation region. In both regions, there is complete independence of the motor parameters. The paper describes a way to provide a smooth transition between the two control schemes. Non-linearities affect the stator flux angle estimation, which leads to the inability to decouple torque and flux. To overcome this problem, a novel PI-based control scheme as well as a simplification on the decoupling terms’ calculation are proposed. Simulation and experimental results are presented to verify the feasibility of the proposed method.