This paper proposes a NCPM (Nano-composite coated permanent magnets)-based IPMSM (Interior Permanent Magnet Synchronous Motor) electric drive system, especially applicable for electric vehicles (EV). For an EV, an increase in the “T/A (torque per ampere)” condition is highly recommended, as it directly affects the maximum distance run by EV on a single charge. Due to NCPM, a substantial increase in magnetic flux intensity, resistance to corrosion and Curie temperature are observed. As a result, the proposed drive clearly exhibits a higher power to weight ratio. Also, it is capable of delivering higher T/A to the drive system without any considerable change in two important factors of EV: (1) mass and volume of the drive system (2) battery capacity of the drive system. Moreover, NCPM performance is less susceptible to temperature variation, which makes it an appropriate candidate for vehicular applications, where temperature inconsistency could be a common issue during working conditions. Also, NCPM-based IPMSM offers a quicker speed response than conventional IPMSM, thus providing higher acceleration, which is one of the important performance factors for vehicular applications. A vector controlled mathematical model of IPMSM and NCPM-based IPMSM is tested for various speed commands. Also, the NCPM-based IPMSM, in the proposed configuration, is fed from a three-level DCMLI (diode clamped multi-level inverter), as the drive system is considered for medium to high power applications. A comparative performance analysis is carried out between the proposed drive system and a conventional IPMSM-based drive system using MATLAB/SIMULINK to indicate the efficacy of the proposed configuration.