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Toyota Motor Corporation has developed a new battery electric vehicle (BEV) on the dedicated e-TNGA platform for BEVs, which was designed to lower the center of gravity of the vehicle and increase body stiffness. In addition to a full-time 4WD system, another feature of this new BEV is its pleasurable driving experience. A new inverter drive unit was developed for this system. Unlike the previous inverter, the advantage of the new inverter is that it is small enough to be mounted inside the transaxle housing, thereby contributing to the availability of interior and luggage space. The temperature rise of the power semiconductors in the inverter was reduced considerably by the development of a new power semiconductor for BEVs. This enables a parallel layout of two power semiconductors instead of three. The components of the inverter were also downsized. A coreless current sensor was adopted, and capacitors were developed with significantly lower capacitance.