A coordinated torque distribution method (CTDM) combined with balanced torque vectoring distribution method (BTVDM) and differential braking distribution method (DBDM) is proposed to enhance vehicle lateral stability and improve ride comfort. The phase plane of sideslip angle and its angular velocity with three regions are used to evaluate vehicle lateral stability. The models of region boundary parameters considering vehicle velocity, steering angle, and road adhesion coefficient are established on the basis of the nonlinear partial least squares regression model (NLPLSRM). Vehicle lateral stability is dynamically evaluated on the basis of the vehicle state position in the phase plane. The distribution ratio of direct yaw moment (DYM) realised by DBDM and BTVDM is determined in accordance with the instability risk of vehicle lateral stability. Compared with BTVDM and DBDM, the proposed CTDM can correctly realise the accuracy of DYM and reduce vehicle velocity, which is beneficial to improving vehicle lateral stability. Numerical simulation results show that the proposed CTDM substantially improves vehicle lateral stability and reduces control intervention for ride comfort.