In this comprehensive study, the concept and structural diagram of the system for diagnostics of induction electric motors of vehicles with the development of algorithms for the operation of modular units for monitoring the state of the main structural elements are proposed. During the development of the diagnostic system, the peculiarities of the construction of diagnostic systems of rotating electric machines were investigated in the real conditions of their operation, and modern methods of current and vibration diagnostics were implemented. The work algorithms of each module are presented in the functional diagram of the general diagnostic system of and cover important defects of induction motors. The diagnostic system combines methods that use different diagnostic principles and criteria and are adapted for use in an embedded diagnostic system. The developed functional diagram of the diagnostic system can be used for practical implementation in physical form. The use of the proposed diagnostic system will make it possible to obtain continuous information about the state of both electrical and mechanical components of the induction motor when operating under load with a poor-quality power system in real operating conditions.