In this paper, a novel permanent magnet-assisted synchronous reluctance machine (PMASynRM) with rare-earth PMs and ferrite magnets is proposed. The performance of PMASynRM is discussed with respected to the different magnet ratio of rare-earth PMs and ferrite magnets. Some characteristics including the flux density, output torque, cogging torque, output power, power factor, torque ripple, loss, efficiency, and demagnetization are calculated by 2-D finite element analysis (FEA). The analysis results show that the excellent performance can be obtained by using hybrid magnet of rare-earth PMs and ferrite magnets with the suitable magnet ratio, and provide some desirable cost-performance trade-off.