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Based on the conventional hybrid excitation switched flux permanent magnet (HE-SFPM) machines, this paper proposes a novel HE-SFPM machine with hybrid magnets, e.g. Ferrite + NdFeB. By changing the magnet composition, e.g. changing the Ferrite and NdFeB quantities, different machine performance can be achieved. The frozen permeability method is used to identify the individual contribution of magnets (Ferrite + NdFeB), excitation and armature currents to the phase fluxes, on-load torque, etc. It is found that by properly choosing the composition of magnets, e.g. 50% Ferrite + 50% NdFeB, the flux weakening capability can be significantly improved while the overloading capability can be maintained compared to its conventional counterparts using pure NdFeB magnet. This also results in a significant reduction in material cost because the NdFeB can be 20 times more expensive than the low cost Ferrite, making the proposed machine extremely attractive for cost sensitive applications such as hybrid or electrical vehicles (HEV or EV).