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Due to high torque and power density, permanent magnet synchronous motor (PMSM) has become the most viable candidate for electric vehicle (EV) traction application. However, to obtain such high torque and power density within a compact motor structure can cause a significant temperature rise within the motor while operating. As a result of high temperature rise, permanent magnet demagnetization may even occur within the motor. Thus, PMSM is susceptible to thermal instability. Therefore, to ensure thermal stability during varying operating conditions, thermal analysis is a mandatory procedure in addition to electromagnetic analysis during the design phase of the motor. In this paper, a computationally efficient numerical finite element analysis (FEA) process has been proposed for thermal analysis of PMSM.