In order to increase efficiency and reliability of hub motor power device for distributed driving electric vehicle, a novel hub motor with an external rotor PM (permanent magnet) is designed and optimized. The performance parameters of hub motor are computed and selected based on vehicle dynamics indicators and the driving equations. This paper determines the optimum primary size of hub motor by choosing appropriate magnetic circuit structure and integrating three key parameters, including as stator split ratio, electromagnetic load and viscous damping coefficient. This paper has built the analysis model of external rotor PM hub motor, and simulated and analyzed the transient magnetic field of hub motor under no-load and load transient or steady state. Simulation results indicate that the external rotor PM hub motor designed by combining stator split ratio, electromagnetic load and viscous damping coefficient has satisfactory electromagnetic performance, which can satisfy the performance requirements and indicators of hub motor power device for distributed driving electric vehicles.