The PEM (Polymer Electrolyte Membrane) fuel cell is very popular for transportation applications because of its high energy density, low operating temperature, low greenhouse gases emission and high fuel efficiency. But direct use of PEM fuel cell as a single power source for electric vehicles is restricted due to its slow dynamics and less peak power supplying capability. Hydrogen safety, being used as fuel for these vehicles, is another biggest problem. Now days, in electric vehicles using PEM fuel, the fuel cell is hybridized with supercapacitor or high power battery to improve its slow dynamics and peak power supplying capability. But hybrid system increases complexity, require more space for installation and also has high cost. The present paper proposes new protocol for the development of MEA (Membrane Electrode Assembly) for PEM fuel cell to overcome its slow dynamics, low peak power supplying capability and also proposes a reactor for generation of hydrogen on board from methanol to provide hydrogen safety. PEM fuel cell using developed MEA and on board hydrogen generation rector will be more suitable for electric vehicles used for transportation in smart cities.