The grains initiating magnetization reversal in the microstructure of a hot-deformed permanent magnet have been identified in this study by performing micromagnetic simulations based on the Landau-Lifshitz-Gilbert equation. Hotdeformed permanent magnets comprise tabular grains, the easy-axis orientations of which are inclined with respect to the nominal easy axis of the permanent magnet. In the simulation model, the grains complexly overlap, similar to in actual permanent magnets. We analyze the simulation results considering grain overlap and the easy-axis tilt angles of the grains. The initiation of magnetic nucleation requires a high concentration of grains with large easy-axis tilt angles. We clarify the magnetic-nucleation process and provide a method to enhance the performance of permanent magnets by avoiding a high concentration of grains with large easy-axis tilt angles.