This paper proposes a novel permanent magnet assisted synchronous reluctance (PMAREL) machine, the main structure of this machine is quite similar to that of traditional PMAREL machine, and the main difference is that the grain-oriented silicon steel is used to replace some part of the stator teeth. The rolling direction of the grain-oriented silicon steel is along the radial direction of the machine, thus the advantage of higher permeability and higher kneel point in this material can be used to release the flux saturation problem of the traditional non-grain-oriented steel used in the PMAREL machine when the applied current density is high. Firstly, the structure of both proposed novel and traditional PMAREL machines are optimized and the design parameters are determined. Secondly the electromagnetic and mechanical performance are compared in these two machines which includes the demagnetization analysis, mechanical stress analysis when the rotor at the maximum speed, torque ability, efficiency by using the finite element method (FEM). It can be seen that the problem of stator teeth saturation in the novel PMAREL has been alleviated, and compared with the traditional PMAREL machine, the novel PMAREL has higher efficiency, wider speed range and 7% higher torque ability.