This paper presents application of a switched reluctance motor with exterior rotor as an in-wheel direct drive motor for low-power electric vehicles (EVs). A prototype system is realized for experimental studies. Both analytical method and finite-element analysis (FEA) are used in this research to obtain characteristics of the motor. The results of the FEA and analytical calculations are presented, and compared to experimental results. The obtained test and simulation results show that the proposed system is suitable for low-power and low-cost EVs.