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Honda has been proposing and developing a Transverse Flux Motor (T.F. motor) in order to shorten axial length of the motor for hybrid electric vehicles (HEVs). In contrast to conventional motors that are composed of a stator core (made from magnetic steel sheet) and winding wires, the T.F. motor is a new type of three-dimensional magnetic circuit motor composed of a soft magnetic composites (SMC) core and a coil. While reducing axial length and achieving a simple stator architecture comprised of just five parts, the new motor raises issues including the need to improve motor efficiency and the development of techniques for the manufacture of rectangular wave-shaped coils. To improve motor efficiency, we conducted a parameter study of the SMC core material and manufacturing conditions to establish the optimum required specifications for reducing iron loss.