This paper presents the sliding mode observer of an induction motor for the fuel cell electric vehicles. The exact rotor flux estimation of the induction motor is important for achieving the best performance from the fuel cell electric vehicle system. However, the flux estimator of the induction motor control is highly sensitive to the voltage sensor output characteristics and system parameter variation influenced by external factors. In order to eliminate these problems, this paper investigates the electric vehicle performance due to parameter variation of the induction motor. A new method to estimate the fuel cell electric vehicle system is proposed based on the sliding mode observer.