A permanent magnet motor with enhanced inductance which comprises a motor frame having annular inner walls defining a void therein and a stator mounted on and extending around the periphery of the inner walls of the frame in the void in the motor frame. The stator includes windings positioned thereon for developing current from power supplied to the motor, the innermost portion of the stator defining a radial inner portion of the void. A rotor is mounted in the void radially inwardly of the stator for concentric rotation in the motor frame in closely spaced-apart relation to the stator. The rotor has an iron core for air gap flux interaction with the stator, and the rotor has a magnet zone and a lamination zone extending axially along the length of the rotor. The magnet zone has a permanent magnet positioned on the rotor and projecting therefrom for interaction with the windings on the stator to produce magnetic-field induced torque for rotating the rotor. The lamination zone has a plurality of stacked laminations positioned on the rotor for rotation therewith, the lamination zone being adjacent to the magnet zone and devoid of magnets. The laminations extend from the rotor shaft into closely spaced-apart radial alignment with a portion of the windings and forming an area of decreased air gap and increased inductance between the stator and the rotor.