The proposed control strategy synergistically integrates Model Reference Adaptive Control (MRAC) with Field-Oriented Control (FOC) to achieve highly precise and dynamic torque and magnetic flux in induction motor propulsion units.. It effectively compensates for nonlinearities and parameter variations under dynamic operating conditions. Integration with a seven level CHB multilevel inverter employing SiC MOSFETs enhances efficiency, switching speed, and voltage quality. Unlike conventional FOC, which is sensitive to parameter drift due to thermal and magnetic effects, the adaptive law—derived via Lyapunov stability theory—ensures robust speed tracking despite disturbances. Simulation results confirm improved transient performance, reduced torque ripple, superior tracking accuracy, and lower total harmonic distortion (THD). This architecture offers a reliable, high-efficiency solution for advanced electric vehicle (EV) propulsion systems.