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A fault-tolerant operation method for a dynamic electric vehicle propulsion system using variable torque versus speed characteristics is presented. With this method, the electrically powered vehicle can continue driving with a minimum performance reduction, and without the need for redundant systems on machine or electronics level. One of the possible single module fault scenarios, during which the system must continue operation, is shown. The accompanying theoretical analysis of the fault scenario is presented, and simulations and measurements are executed to demonstrate the presented solution.