A permanent magnet rotary machine comprises a rotor comprising a rotor core and a plurality of permanent magnet segments embedded in the rotor core and a stator having a plurality of coils and disposed to define a gap with the rotor, or a permanent magnet rotary machine comprises a rotor comprising a rotor core and a plurality of permanent magnet segments mounted on the surface of the rotor core and a stator having a plurality of coils and disposed to define a gap with the rotor. In the rotor, each permanent magnet segment is an assembly of divided permanent magnet pieces, the coercive force near the surface of the magnet piece is higher than that in the interior of the magnet piece, and the assembly allows for electrical conduction between the magnet pieces.