Bounding volume based approaches in velocity obstacle (VO) provide a good solution for collision avoidance of mobile robots with uncertainty. However, the VO built with the bounding footprint always has over-constraining problems which may lead to conservative maneuvers of the mobile robots. Addressing this problem, a vertical ellipse based velocity obstacle (VEVO) collision avoidance method is proposed in this paper. The method mitigates the over-constraining situation by building the footprint probability ellipse whose minor axis is vertical to the direction of the obstacle to minimize the VO area. Based on VEVO, a DWA (Dynamic Window Approach) integrated method is proposed to provide a set of available velocities in speed selection. According to different collision avoidance objectives like collision safety, shortest time consumption and shortest trajectory length, a multi-objective velocity selecting strategy is proposed to provide optimal velocities for motion planning. Furthermore, a dynamic local path adjustment method is proposed to help robots react to the closest obstacle (dynamic or static) according to different collision safety requirements. We validate our methods in a simulated workspace with different numbers of robots going to their goal points. Experimental results show VEVO method could improve the collision avoidance performance in crowded multi-robot environment and robots could achieve their different objectives when suitable parameters are set in the velocity evaluation function. The proposed dynamic local path adjustment method only affects the trajectories in local areas and could ensure collision avoidance safety and performance at the same time.