The magnetic-field modulated brushless double-rotor machine (MFM-BDRM), getting rid of brush and slip ring, is a preferable selection for the power splitting device in hybrid electric vehicles. In practical application, however, the MFM-BDRM is facing the challenge of low power factor owing to its special operating principle—the magnetic field modulation principle. Although some researchers dedicate themselves to improving the power factor of MFM-BDRM, the cause of low power factor in the MFM-BDRM is still not clear. This article will investigate the power factor problem of MFM-BDRM, systematically. First, the inductance feature of MFM-BDRM based on the magnetic field modulation principle is investigated. Second, the fundamental cause of the low power factor of MFM-BDRM is analyzed. Furthermore, three feasible attempts are made and investigated to improve the power factor of MFM-BDRM. Finally, a prototype of MFM-BDRM is manufactured, and parts of the analysis are verified by experiments.