Vehicular cloud computing (VCC) is a promising approach that uses cloud computing techniques in vehicular environment to execute smart applications. Vehicular environment is characterized by high mobility. This requires the services executed by a vehicular resource in a vehicular cloud to be migrated before it leaves a network. Migration is also required when a service‐requesting vehicle has to leave a network before its request is executed. Moreover, to balance the network load, virtual machine (VM) migration is desired as, at times, a single physical host may become overloaded. In this work, we propose an adaptive resource placement policy by optimizing live VM migration process in vehicular cloud network. The Pareto optimal mapping of migrating VMs to a physical host is carried out using a hybrid optimized algorithm, which is the combination of particle swarm optimization and genetic algorithm. The optimization is done by maximizing a fitness function that is developed by considering significant quality‐of‐service (QoS) parameters, such as network latency, migration delay, power consumption, and vehicular mobility. These QoS parameters are mathematically formulated in view of a vehicular network. The proposed algorithm reduces migration latency, transmission latency, and service delay. It also distributes the load among the available physical hosts within a cloud system, thus reducing the average wait time for each cloud user. Simulation results exhibit significant decrease in waiting time, service delay, and migration delay. It is also shown that the proposed algorithm reduces total power consumption of the system.