Electric Vehicle (EV) is crucial for future transportation which will improve fuel economy and contributes toward reduction of emissions. EVs are becoming increasingly integrated component of transportation in order to fulfil ever-increasing demands for improved performance with safety and reduced environmental impact. Therefore, to increase the efficiency and reduce the maintenance cost of these vehicles, an early fault diagnosis system is essential. This enables early detection of deterioration of the vehicle’s health, alleviating a proactive solution and reducing the sudden component breakdown. Keeping the need for further research in mind, this paper provides a comprehensive review of the state-of-the-art Condition Monitoring (CM) and Fault Diagnosis (FD) strategies for various component of electric vehicles. The challenges and suggestions for future work on emerging technology in an electric vehicle are also addressed to promote further targeted research activities based on the current needs.