Purpose – The purpose of this paper is to give an overview of the design issues of permanent magnet machines for the hybrid electric and plug-in electric vehicles, including railway traction and naval propulsion. Design/methodology/approach – Focus is given on both synchronous permanent magnet and reluctance machines. An overview of the design rules are provided, covering the topics of: fractional-slot windings, fault-tolerant configurations, flux-weakening capability, and torque quality. Findings – The peculiarities of these machines and the advanced design considerations to fit the automotive requirements are analyzed. Originality/value – The paper includes a wide description of innovative electrical machines for electric vehicles, including not only the traction capability, but also analysis of features as weight reduction, torque ripple reduction, increase of fault tolerance, and so on. [ABSTRACT FROM AUTHOR]