A method of making a permanent magnet rotating machine, the permanent magnet rotating machine comprising a rotor, including a rotor core and a plurality of permanent magnet segments attached to the outer side surface of the rotor core, and a stator surrounding the rotor to define a gap therebetween and including a stator core having a plurality of slots and windings received in the slots, wherein said permanent magnet segments each have a cross-sectional shape including a central portion having a first thickness (Tc) and transversely opposed end portions having a second thickness (Te) which is less than the first thickness, characterized in that said method comprises: machining a sintered magnet block into a cross-sectional shape including a central portion having a first thickness (Tc), transversely opposed end portions having a second thickness (Te), wherein a ratio of the second thickness to the first thickness (Te/Tc) is set between 0.1/1 and 0.4/1, and wherein the sintered magnet body has a R 1 -Fe-B composition in which R 1 is at least one element selected from rare earth elements inclusive of Y and Sc; locally disposing a powder on the surface of transversely opposed end portions of the magnet body, the powder comprising at least one compound selected from the group consisting of an oxide of R 2, a fluoride of R 3, and an oxyfluoride of R 4 wherein each of R 2, R 3, and R 4 is at least one element selected from rare earth elements inclusive of Y and Sc; heat treating the magnet body and the powder at a temperature equal to or below the sintering temperature of the magnet body in vacuum or in an inert gas to absorb the powder into the magnet body to create a permanent magnet segment having a higher coercive force at transversely opposed end portions than at a central portion thereof, wherein the difference in the coercive force between the end portions and the central portion is 30 kAm -1 or more; and arranging a plurality of the permanent magnet segments attached to the side surface of the rotor core at predetermined intervals such that their polarity is alternately opposite in a circumferential direction. machining a sintered magnet block into a cross-sectional shape including a central portion having a first thickness (Tc), transversely opposed end portions having a second thickness (Te), wherein a ratio of the second thickness to the first thickness (Te/Tc) is set between 0.1/1 and 0.4/1, and wherein the sintered magnet body has a R 1 -Fe-B composition in which R 1 is at least one element selected from rare earth elements inclusive of Y and Sc; locally disposing a powder on the surface of transversely opposed end portions of the magnet body, the powder comprising at least one compound selected from the group consisting of an oxide of R 2, a fluoride of R 3, and an oxyfluoride of R 4 wherein each of R 2, R 3, and R 4 is at least one element selected from rare earth elements inclusive of Y and Sc; heat treating the magnet body and the powder at a temperature equal to or below the sintering temperature of the magnet body in vacuum or in an inert gas to absorb the powder into the magnet body to create a permanent magnet segment having a higher coercive force at transversely opposed end portions than at a central portion thereof, wherein the difference in the coercive force between the end portions and the central portion is 30 kAm -1 or more; and arranging a plurality of the permanent magnet segments attached to the side surface of the rotor core at predetermined intervals such that their polarity is alternately opposite in a circumferential direction.