In recent times, there has been an increased demand for electric vehicles. In this context, the energy management of the electric motor, which are an important constituent of electric vehicles, plays a pivotal role. A lot of research has been conducted on the optimization of heat flow through electric motors, thus reducing the wastage of energy via heat. Futuristic power sources may increasingly rely on cutting-edge innovations like energy harvesting and self-powered induction motors. In this context, effective thermal management techniques are discussed in this paper. Importance was given to the potential energy losses, hotspots, the influence of overheating on the motor efficiency, different cooling strategies, certain experimental approaches, and power control techniques. Two types of thermal analysis computation methods, namely the lumped-parameter circuit method (LPCM) and the finite element method (FEM), are discussed. Also, this paper reviews different cooling strategies. The experimental research showed that the efficiency was greater by 11% with the copper rotor compared to the aluminum rotor. Each rotor type was reviewed based on the temperature rise and efficiency at higher temperatures. The water-cooling method reduced the working temperatures by 39.49% at the end windings, 41.67% at the side windings, and by a huge margin of 56.95% at the yoke of the induction motor compared to the air-cooling method; hence, the water-cooling method is better. Lastly, modern cooling strategies are proposed to provide an effective thermal management solution for squirrel-cage induction motors.