On the basis of the excellent driving force demand of hybrid electric vehicles (HEVs), this paper studies the torque property of the compound-structure permanent-magnet motor (CSPM motor) used for HEVs, which is influenced by magnetic field oversaturation and variable nonlinear parameters. Firstly, the system configuration of HEVs based on CSPM motor and its working mode are introduced. Next, the state equation of CSPM motor in three-phase stationary coordinate system is proposed in order to investigate its torque performance; then, the factors affecting the output torque are gained. Finite element method (FEM)-based electromagnetic parameters analysis and design is carried out, to raise the output torque and reduce the torque ripple of CSPM motor. Besides, optimized design parameters are used to establish the FEM model, and the simulation results of electromagnetic performances for the CSPM motor before and after optimization are given to verify the rationality of optimization.