The authors of the paper present the high-frequency voltage injection-based sensorless vector control method, where the test signals are injected in the estimated common coordinate system. During the modeling process a custom designed permanent magnet synchronous machine is used and its parameters are calculated using measurements combined with finite element method (FEM). The authors present an enhanced PLL-based estimator, and detail the limitations of the sensorless algorithm using the FEM results. Simulation results will be presented, where the sensorless method is combined with an incremental encoder, demonstrating the low-frequency region performance of the proposed algorithm.