An axial flux machine comprising: a stator comprising a stator housing enclosing a plurality of stator bars disposed circumferentially at intervals around the axis of the machine, each of the stator bars having a set of coils wound therearound for generating a magnetic field, and the stator housing comprising first and second radial walls and cylindrical inner and outer walls to provide annular shaped housing forming a hollow region about the axis of the machine; a rotor comprising a set of circumferentially mounted permanent magnets and mounted for rotation about the axis of the machine, the rotor being spaced apart from the stator along the axis of the machine to define a gap between the stator and rotor and in which magnetic flux in the machine is generally in an axial direction, and the rotor formed of an annulus and having a hollow central region about the axis of the machine; characterised in that the machine comprises: a first machine housing enclosing the rotor, the first machine housing being mounted to the stator housing; a second machine housing enclosing the side of the stator opposed to the rotor, the second machine housing being mounted to the stator housing; a clutch mechanism located co-axially with the axis of the machine and located axially and radially within the hollow regions of the rotor and stator, the clutch mechanism comprising: a clutch basket comprising a first set of one or more clutch plates and having a first engagement surface for coupling torque in or out of the machine; and a clutch plate bearer comprising a second set of one or more clutch plates and having a second engagement surface for coupling torque in or out of the machine, the one or more clutch plates of the clutch plate bearer being arranged to be selectively driven in and out of engagement with the one or more clutch plates of the clutch basket; and a radial bearing between the first machine housing and the first engagement surface of the clutch basket, and a clutch plate bearer bearing between the second machine housing and the second engagement surface of the clutch plate bearer, the rotor being co-journaled with the first engagement surface, wherein the rotor is fixedly mounted on the clutch basket. a stator comprising a stator housing enclosing a plurality of stator bars disposed circumferentially at intervals around the axis of the machine, each of the stator bars having a set of coils wound therearound for generating a magnetic field, and the stator housing comprising first and second radial walls and cylindrical inner and outer walls to provide annular shaped housing forming a hollow region about the axis of the machine; a rotor comprising a set of circumferentially mounted permanent magnets and mounted for rotation about the axis of the machine, the rotor being spaced apart from the stator along the axis of the machine to define a gap between the stator and rotor and in which magnetic flux in the machine is generally in an axial direction, and the rotor formed of an annulus and having a hollow central region about the axis of the machine; a first machine housing enclosing the rotor, the first machine housing being mounted to the stator housing; a second machine housing enclosing the side of the stator opposed to the rotor, the second machine housing being mounted to the stator housing; a clutch mechanism located co-axially with the axis of the machine and located axially and radially within the hollow regions of the rotor and stator, the clutch mechanism comprising: a clutch basket comprising a first set of one or more clutch plates and having a first engagement surface for coupling torque in or out of the machine; and a clutch plate bearer comprising a second set of one or more clutch plates and having a second engagement surface for coupling torque in or out of the machine, the one or more clutch plates of the clutch plate bearer being arranged to be selectively driven in and out of engagement with the one or more clutch plates of the clutch basket; and a clutch basket comprising a first set of one or more clutch plates and having a first engagement surface for coupling torque in or out of the machine; and a clutch plate bearer comprising a second set of one or more clutch plates and having a second engagement surface for coupling torque in or out of the machine, the one or more clutch plates of the clutch plate bearer being arranged to be selectively driven in and out of engagement with the one or more clutch plates of the clutch basket; and a radial bearing between the first machine housing and the first engagement surface of the clutch basket, and a clutch plate bearer bearing between the second machine housing and the second engagement surface of the clutch plate bearer, the rotor being co-journaled with the first engagement surface, wherein the rotor is fixedly mounted on the clutch basket.