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This paper proposes a novel magnet-axis-shifted hybrid permanent magnet (MAS-HPM) machine, which features an asymmetrical magnet arrangement, i.e., low-cost ferrite and high-performance NdFeB magnets, are placed in the two sides of a “▽„-shaped rotor pole. The proposed magnet-axis-shift (MAS) effect can effectively reduce the difference between the optimum current angles for maximizing permanent magnet (PM) and reluctance torques, and hence the torque capability of the machine can be further improved. The topology and operating principle of the proposed MAS-HPM machine are introduced and are compared with the BMW i3 interior permanent magnet (IPM) machine as a benchmark. The electromagnetic characteristics of the two machines are investigated and compared by finite element analysis (FEA), which confirms the effectiveness of the proposed MAS design concept for torque improvement.