Permanent magnet synchronous motors are finding ever increasing use in hybrid and electric vehicles. This thesis develops a new control strategy for Permanent Magnet Synchronous Motors (PMSMs) to reduce the motor and inverter losses compared to conventional control techniques. The strategy utilises three common control modes for PMSMs; brushless DC with 120°E conduction, brushless DC with 180°E conduction, and brushless AC control. The torque and power output for each control mode is determined for an example motor system using a three phase axial flux YASA motor and an IGBT inverter. The loss components for the motor and inverter are also estimated using a combination of analytical and simulation techniques and results are then validated against experimental measurements. Efficiency maps for each control mode have been used to determine an optimal mode utilisation strategy, which minimises the total system losses and maximises the available motor torque output. The proposed control strategy switches between the three control modes without interruption of motor torque to maximise the system efficiency for the instantaneous operating speed and demanded torque output. The benefits of the new strategy are demonstrated using an example vehicle over a simulated drive cycle. This yields a 10% reduction in losses compared to conventional brushless AC control.