This paper investigates the demagnetization problem of permanent magnets for permanent magnet-assisted synchronous reluctance motors (PMa-SynRM) and applies “demagnetization ratio” as an index to evaluate demagnetization of permanent magnet (PM). The PMa-SynRM is often designed with multilayer flux barriers to improve saliency and reluctance torque in the rotor. Weaker or less PM (than that for interior PM motors) is embedded into the rotor which could be demagnetized in high-performance operation. PM demagnetization involves temperature, current magnitude, current phase angle, designed PM operating point, or combined effect of the above factors. This work investigates the demagnetization risk for PMs in all the layers of PMa-SynRM rotor considering these factors. In particular, the current phase angle for flux weakening operation is often omitted in demagnetization analysis. First, the motor performance to satisfy the operation condition over a wide speed range is analyzed and the proportion of motor torque components, i.e., reluctance torque and electromagnetic torque, considering temperature is investigated. Then, the flux density distributions on PMs at each position/layer are studied and the PM operating points are obtained based on the variation of excitation current, current phase angle, and temperature in order to evaluate the demagnetization risk. The analysis suggests that the high current phase angle combining the effect of high temperature is the major cause of irreversible demagnetization. Finally, a method incorporating the index “demagnetization ratio” is proposed to redesign the PMa-SynRM to avoid demagnetization. Experiments are conducted to validate the simulation.