Transverse flux machine (TFM) useful for in-wheel motor applications is presented. This transverse flux permanent magnet motor is designed to achieve high torque-to-weight ratio and is suitable for direct-drive wheel applications. As in conventional TFM, the phases are located under each other, which will increase the axial length of the machine. The idea of this design is to reduce the axial length of TFM, by placing the windings around the stator and by shifting those from each other by electrically 120 o or 90 o , for three-or two-phase machine, respectively. Therefore, a remarkable reduction on the total axial length of the machine will be achieved while keeping the torque density high. This TFM is compared to another similar TFM, in which the three phases have been divided into two halves and placed opposite each other to ensure the mechanical balance and stability of the stator. The corresponding mechanical phase shifts between the phases have accordingly been taken into account. The motors are modelled in finite-element method (FEM) program, Flux3D, and designed to meet the specifications of an optimisation scheme, subject to certain constraints, such as construction dimensions, electric and magnetic loading. Based on this comparison study, many recommendations have been suggested to achieve optimum results.