This paper presents the characteristic behavior of direct vector control of two induction motors with sensorless speed feedback having the same rating parameters, paralleled combination, and supplied from a single current-controlled pulse-width-modulated voltage-source inverter drive. Natural observer design technique is known for its simple construction, which estimates the speed and rotor fluxes. Load torque is estimated by load torque adaptation and the average rotor flux was maintained constant by rotor flux feedback control. The technique’s convergence rate is very fast and is robust to noise and parameter uncertainty. The gain matrix is absent in the natural observer. The rotor speed is estimated from the load torque, stator current, and rotor flux. Under symmetrical load conditions, the difference in speed between two induction motors is reduced by considering the motor parameters as average and difference. Rotor flux is maintained constant by the rotor flux control scheme with feedback, and the estimation of rotor angle is carried out by the direct vector control technique. Both balanced and unbalanced load conditions are investigated for the proposed AC motor drive system. Experimental results presented in this paper show good agreement with the theoretical formulations.