In order to simplify manufacture processes and improve fault-tolerant capabilities, modular electrical machines, especially the ones with segmented stators, are increasingly employed. However, flux gaps between segments are often inevitable. In this paper, to take advantage of these flux gaps to enhance the machine performance, novel modular permanent magnet machines with different slot/pole combinations have been proposed. The influence of these flux gaps on the electromagnetic performance of modular PM machines, such as winding factor, open-circuit air-gap flux densities, back-EMFs, cogging torque, on-load torque, inductances, magnetic saturation and copper losses, are comprehensively investigated and general rules have been established. It is found that for modular machines having slot number higher than pole number, the flux gaps between stator segments degrade the electromagnetic performance due to the lower winding factor and the flux defocusing effect. However, for modular machines having slot number lower than pole number, the electromagnetic performances can be significantly improved using proper flux gap width due to the higher winding factor and the flux focusing effect. The finite element results are validated by experiments using two prototype modular machines.