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This paper focuses on the common-mode voltage reduction and the power quality of matrix converters for a low-voltage transfer ratio of less than 0.5 by the direct space vector modulation (DSVM) method. The principles of selecting suitable switching configurations based on new space vector sectors are described, and an entire switching table for the new control strategy is developed. The matrix converter with the proposed method reduces peak-to-peak common-mode voltage remarkably. The new DSVM method has advantages over the conventional DSVM method, such as lower total harmonic distortion of line-to-line output voltage and a reduction in switching loss by a minimum number of switching commutations. The proposed DSVM method can be easily implemented in software. Simulation and experimental results are shown to verify the effectiveness of the proposed DSVM method.