The Gateshead-based business announced the recruitment drive ahead of its ambitions to relocate to a larger 55,000 sq ft premises in Team Valley.
The company said the 200 skilled new jobs will mainly be based in the North East. Sevcon currently employs more than 80 engineers and software developers in its headquarters on Kingsway.
Matt Boyle, Sevcon president and chief executive, said: "The worldwide electrification movement is prompting our ambitious growth agenda and our product roadmap has the potential to put us in the sweet spot for this transition.
"These are exciting times for the company and we will need some 200 additional members of staff to support our growth. The future has never been brighter for Sevcon."
Last year the company opened a base in the Thames Valley near Oxford, where it also plans to increase staff numbers in the next few years.
Boyle added: "We are keen to attract skilled engineers from, and to the North East, and can offer excellent career opportunities across all ages and skills group from engineering apprentices, to technicians, graduates and experienced engineers."
Earlier this month Sevcon revealed it had signed a deal for the development of an electric drivetrain for a Chinese/ European car maker worth up to $200m (£160m), taking its current pipeline to $400m (£320m).
The business posted record sales in 2016 of $49.8m (£40m) up from $41.1m (£33m) in 2015.