This paper presents a torque distribution algorithm to improve the energy efficiency of four-wheel-drive (4WD) electric vehicles with PMSM hub motors. In order to optimize the torque distribution method, at first the motor model considering the affect of iron loss and the loss model of multi-motors drive system of 4WD electric vehicle with PMSM hub motors, which operate at straight-line condition, are established. Besides, realize the online identification of motor parameters based on the MARS, which is important for updating the loss model parameters of the motor drive system. By doing this, the ideal torque distribution ratio can be obtained from the loss model in real-time. The simulation result using different distribution algorithms shows that the optimized torque distribution algorithm based on the loss model can be useful for improving the energy efficiency.