A variable magnetic flux-type rotary electric machine comprising: an annular stator including a stator coil wound on a plurality of teeth; and a rotor, especially a hybrid IPM rotor, having a circular shape that is concentric with the stator and defines an air gap between the rotor and the stator, and the rotor including a rotor core and at least one permanent magnet (m, m1-m13) per pole arranged in a d-axis magnetic path, a shape of a magnetic field circuit being roughly symmetrical with respect to a magnetic pole center, characterized in that the at least one permanent magnet (m, m1-m13) per pole, which is fitted into a gap provided in opposing portions of the rotor core, is positioned in the rotor and electrical gap parts are formed between adjacent magnetic poles of the rotor, so that two magnetic flux by-pass paths (3, 5a, 5b, 26-27, 29, 33, 39, 43a, 43b) are formed for each of said permanent magnets (m, m1-m13) in the continuous portion between adjacent magnetic poles on the outer circumferential part of the rotor near the air gap that serves as a gap portion between the stator and the rotor, and narrow magnetic paths (2, 23-25, 28, 30, 32, 34, 41, 46a-46b) are formed between said magnets (m, m1-m13) and said electrical gap parts such that a width (A, A1, A2) of a magnetic path (2, 24, 23,25,28,30,32,34,41,46a,b) between the at least one permanent magnet (m, m1-m13) and an electrical gap part, is smaller than a width of the magnetic flux bypass path (3, 5a,b, 26-27, 29, 33, 39, 43a,b) on an outer circumferential part of the rotor proximate to the air gap, a magnetic resistance in the d-axis magnetic path is smaller than a magnetic resistance in a q-axis magnetic path, and the stator and the rotor are arranged relative to the at least one permanent magnet (m, m1-m13) to set an operating characteristic of d(Kt)/dl >= 0 in a range of at or below magnetic saturation of a core material of at least one of the stator and the rotor, where KT represents a torque constant, and I represents an applied current, and a function of the torque constant KT with respect to the applied current I is represented by KT = Kt(l) for a given torque Tr acting on the rotor that is represented by Tr = KT x I. an annular stator including a stator coil wound on a plurality of teeth; and a rotor, especially a hybrid IPM rotor, having a circular shape that is concentric with the stator and defines an air gap between the rotor and the stator, and the rotor including a rotor core and at least one permanent magnet (m, m1-m13) per pole arranged in a d-axis magnetic path, a shape of a magnetic field circuit being roughly symmetrical with respect to a magnetic pole center, characterized in that the at least one permanent magnet (m, m1-m13) per pole, which is fitted into a gap provided in opposing portions of the rotor core, is positioned in the rotor and electrical gap parts are formed between adjacent magnetic poles of the rotor, so that two magnetic flux by-pass paths (3, 5a, 5b, 26-27, 29, 33, 39, 43a, 43b) are formed for each of said permanent magnets (m, m1-m13) in the continuous portion between adjacent magnetic poles on the outer circumferential part of the rotor near the air gap that serves as a gap portion between the stator and the rotor, and narrow magnetic paths (2, 23-25, 28, 30, 32, 34, 41, 46a-46b) are formed between said magnets (m, m1-m13) and said electrical gap parts such that a width (A, A1, A2) of a magnetic path (2, 24, 23,25,28,30,32,34,41,46a,b) between the at least one permanent magnet (m, m1-m13) and an electrical gap part, is smaller than a width of the magnetic flux bypass path (3, 5a,b, 26-27, 29, 33, 39, 43a,b) on an outer circumferential part of the rotor proximate to the air gap, a magnetic resistance in the d-axis magnetic path is smaller than a magnetic resistance in a q-axis magnetic path, and the stator and the rotor are arranged relative to the at least one permanent magnet (m, m1-m13) to set an operating characteristic of d(Kt)/dl >= 0 in a range of at or below magnetic saturation of a core material of at least one of the stator and the rotor, where KT represents a torque constant, and I represents an applied current, and a function of the torque constant KT with respect to the applied current I is represented by KT = Kt(l) for a given torque Tr acting on the rotor that is represented by Tr = KT x I.