This study investigates the comparative applicability of Somaloy 700HR 5P and Fe-5.0 wt.%Si powders for axial flux permanent magnet (AFPM) motor cores in low-speed electric vehicles. Optimal forming conditions were derived through Taguchi-based simulations, considering corner radius, forming temperature, and forming speed, followed by prototype fabrication and validation. Simulation and SEM-EDS analyses confirmed consistent density distribution trends, and XRD verified phase stability during forming. While Fe-5.0 wt.%Si exhibited ~10% ± 2 superior electromagnetic performance in the powder state, its motor dynamo performance decreased by 19–25% (n = 1) compared to Somaloy 700HR 5P. This discrepancy was attributed to its ~4% lower target density (7.19 ± 0.02 g/cm³ vs. 7.51 ± 0.01 g/cm³, n = 3), assembly-induced mechanical losses, and non-uniform insulation layer caused by residual H₃PO₄ and Mo segregation. Somaloy 700HR 5P, despite a higher relative density variation (0.084 ± 0.002 g/cm³ vs. 0.063 ± 0.003 g/cm³ for Fe-5.0 wt.%Si), achieved an average density close to 7.5 g/cm³ and delivered more stable motor performance. Overall, Somaloy 700HR 5P was identified as a more suitable candidate for AFPM motor cores in low-speed EV applications, balancing formability and electromagnetic performance.