This paper presents the development of a hybrid thermal model for the EVO Electric AFM 140 Axial Flux Permanent Magnet (AFPM) machine as used in hybrid and electric vehicles. The adopted approach is based on a hybrid lumped parameter and finite difference method. The proposed method divides each motor component into regular elements which are connected together in a thermal resistance network representing all the physical connections in all three dimensions. The element shape and size are chosen according to the component geometry to ensure consistency. The fluid domain is lumped into one region with averaged heat transfer parameters connecting it to the solid domain. Some model parameters are obtained from Computation Fluid Dynamic (CFD) simulation and empirical data. The hybrid thermal model is described by a set of coupled linear first order differential equations which is discretised and solved iteratively to obtain the temperature profile. The computation involved is low and thus the model is suitable for transient temperature predictions. The maximum error in temperature prediction is 3.4% and the mean error is consistently lower than the mean error due to uncertainty in measurements. The details of the model development, temperature predictions and suggestions for design improvements are presented in this paper.