The rare earth permanent magnet (PM) is widely used for traction motors of hybrid and electric vehicles. These motors have more torque density compared to any other type of motors. However, these PMs have the problems of limited reserves, unstable supply, and high cost. For solving these problems, concentrated flux synchronous motor (CFSM) and multi‐layer interior permanent magnet synchronous motor (IPMSM), using ferrite PMs, are compared in this study. The CFSM and multi‐layer IPMSM are introduced and compared with regard to shape, size, electric parameter, and motor characteristics. In addition, two types of motors are fabricated and tested in order to verify their performance and feasibility. Finally, comparing the merits and demerits, the comparative motor types are estimated in this study.