In this thesis the investigation of the modelling, design and analysis of novel permanent magnet machine for cost sensitive applications is presented. More specifically, a novel technique of arranging Ferrite permanent magnets with low energy density to achieve high airgap flux densities like those encountered in devices equipped with high cost rare-earth permanent magnets, thus, achieving significant cost savings, without substantial change in performance. Consequently, a spoke-type rotor equipped with axially magnetized permanent magnets in addition to the conventional circumferential permanent magnets is proposed, in order to increase the flux focusing and the airgap flux density.