Energy Saving Policy Helps China's High Efficiency Motor Industry Development

Recently, the State Council held an executive meeting to study policies and measures to promote the consumption of energy-saving household appliances, energy-saving automobiles, and high-efficiency motors, and decided to allocate .6 billion yuan to support the promotion of high-efficiency motors. Affected by this good news, the stock prices of listed companies in energy-saving autos and motors have risen to varying degrees in recent days.

As a market segment, high-efficiency motors are the industries mentioned by the market at least in the subsidy range, and they are also the first time that the State Council has expressed their position and can support the promotion, showing that the country attaches importance to the high-efficiency motor industry.
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China has become a major motor-manufacturing country and has mastered the production technology of high-efficiency and ultra-efficient energy-saving motors. However, as a whole, the competitiveness of the industry is still weak. The large amount of motors and low energy efficiency level have restricted the healthy development of China's national economy. In the United States, high-efficiency motors have been universally adopted, and in most parts of China, ordinary motors of the third-level or lower standard are still used. Due to the large R&D investment and high manufacturing costs, the price of high-efficiency and energy-saving motors has remained high, which has not been promoted in a healthy and powerful manner. This has further widened the current gap between China's motor energy efficiency and foreign countries. Asymmetric information, misplaced concepts, unregulated markets, and weak awareness of energy conservation have also become obstacles in promotion.

In recent years, China has actively studied the introduction of incentive policies. In 2009, after launching the "Energy-saving Products Benefiting the People's Project", it promoted more than 5 million kilowatts of high-efficiency motors in three years. In early 20, the Ministry of Finance and the National Development and Reform Commission issued the “Notice on Doing a Good Job of Promoting Energy-Efficient Motors in 20”. In March of the same year, Xiangtan, Hunan Province, held a national conference on the promotion of high-efficiency motors in 20. The promotion task that year was 3.77 million kilowatts, which accounted for about 30% of the annual domestic motor sales. At the same time, the two ministries and commissions also increased the subsidy standards for high-efficiency energy-saving small and medium-sized three-phase asynchronous motors, high-voltage three-phase asynchronous motors, and rare earth permanent magnet motors, which shows that the country’s determination to promote energy-efficient motors is large.

The .6 billion yuan subsidy now arranged can be regarded as a vane for further development of high-efficiency motors. Although the scale of subsidy can be described as a drop in the output value of the motor industry, it is still considered to have a significant driving effect. The data shows that the growth rate of industrial added value, total imports and exports, and electricity consumption all fell to single digits in April. All these indicate that the economy is still in a downward trend. In particular, the industrial added value and export data have fallen sharply. The overall economy is still in the process of bottoming out. This policy draws on the relevant policies of 2009 and pays more attention to the combination of promoting domestic demand and adjusting the structure, thereby promoting energy-saving emission reduction and industrial restructuring.

Some analysts believe that in the context of the “landing” of relevant policies in 202, the market situation of highly efficient and energy-saving motors will be more optimistic. The use of financial subsidies can mobilize the purchasing enthusiasm of high-efficiency motor users, and gradually improve the industrial mechanism, and finally achieve a virtuous circle of “financing of financial subsidies—starting of market demand—adjustment of product structure—improvement of energy efficiency standards—optimization of industries”. Some experts said that from 202 to 206, the market capacity of China's new energy automotive motors and control systems will exceed 50 billion yuan. With the implementation of supporting policies for new energy vehicles, the automotive motor industry will usher in a golden period of development.