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Recent data indicates a significant rise in the production of general-purpose motor products, with various derivative series also showing substantial growth. This includes vibration motors, vibrating screen motors, variable frequency motors, elevator motors, submersible motors, injection molding machine motors, permanent magnet synchronous motors, and AC servo motors. New product development has also yielded promising results. For instance, the Y3 series three-phase asynchronous motor, developed during the "10th Five-Year Plan" period, received expert approval in April 2002 and is now being promoted nationwide. Additionally, efforts are underway to replace traditional materials with cold-rolled silicon steel sheets in key derivative series, such as high-efficiency motors, low-noise and low-vibration motors, low-voltage high-power motors, and IP23 low-voltage motors.
As competition intensifies within the motor manufacturing industry, mergers and acquisitions among large manufacturers have become increasingly common. Leading motor companies, both domestically and internationally, are placing greater emphasis on market research, particularly on trends in the business environment and customer demands. This in-depth analysis has enabled many top brands to rise rapidly and establish themselves as key players in the sector.
Industry experts noted that during the "10th Five-Year Plan" period, due to the rapid economic growth, the output of small and medium-sized motor products exceeded the original plan's targets significantly.
The industry is undergoing a major transformation. The integration of small and medium-sized motor manufacturers is accelerating, with nearly 2,000 motor factories currently operating in China. While the number of companies is large, many are small-scale enterprises. Experts highlight that the sheer number of manufacturers leads to intense price competition, resulting in uneven product quality, aggressive pricing strategies, and thin profit margins—major challenges for the survival and development of motor companies.
Motors are inherently labor-intensive, and achieving profitability requires a certain scale of production. As a result, industry profits remain low. The national motor industry employs approximately 300,000 people, yet in 2003, the entire industry generated only 280 million yuan in profit. Even in well-performing companies, net profit rarely exceeded 5% last year. Moreover, due to outdated production processes, many small enterprises still produce a considerable number of substandard motors. According to surveys, the average loss from defective or reworked products in Chinese motor companies is around 10%, compared to less than 0.3% in industrialized countries.
In recent years, several large-scale motor companies with advanced technology and high-quality products have emerged in China. However, none have achieved a dominant market share domestically. Small and medium-sized motors still lack globally recognized brands. The industry urgently needs further consolidation and rationalization, which is becoming a clear trend. Experts emphasize that although the motor industry is traditional, it remains essential across various sectors. Some large motor companies possess expansive facilities and prime locations, making them attractive targets for mergers and acquisitions, which can bring substantial financial benefits to buyers.
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