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Switched-flux permanent magnet (PM) (SFPM) machines have attracted considerable interest in recent years, since the flux focusing can be utilized, both armature windings and PM excitation sources are on the stator, while the salient pole rotor is very simple and robust. In SFPM machines, the high variable flux densities throughout the stator core result in iron loss being a significant proportion of the total losses. This paper presents a novel modular-rotor SFPM machine that facilitates a reduction in iron loss for a marginal reduction in output torque. The modular rotor also offers a reduction in rotor mass over the conventional-rotor topology. The electromagnetic performance of both conventional- and modular-rotor SFPM machines is analyzed by 2-D finite element analyses and is verified by measurements on small-scaled prototype SFPM machines.