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.