In 2023, China's gross domestic product (GDP) was 126 trillion yuan, a year-on-year increase of 5.2%. The overall industrial economy is also showing a rebound trend, with a total annual investment of about 16.2 trillion yuan, a year-on-year increase of 9%. In terms of policies, national and local government agencies have focused on setting relevant incentive policies to help achieve the "Dual Carbon Goals", promoting the orderly and positive development of the industry. In this environment, although the production of electric motors in China has decreased slightly in 2023 (the total annual production of electric motors is about 1.032 million MW, a year-on-year decrease of 3.2%), sales have achieved a slight increase (the total annual sales are about 210.2 billion yuan, a year-on-year increase of 1.9%). In the future, under the guidance of relevant national policies, the downstream main application areas of the Chinese electric motor market will maintain stable growth, and the stable development of the downstream market will ensure the demand of the electric motor market. It is expected that from 2024 to 2025, the overall annual growth rate of the Chinese motor market will remain at 3% to 4%.

       In 2023, the relevant policies of the Chinese electric motor market are focused on helping to achieve the "Dual Carbon Goals", aiming to achieve green development in various industries through improving and enhancing motor energy efficiency, thereby promoting the achievement of the "carbon peak" and "carbon neutrality" dual carbon goals. Therefore, the introduction of these policies indirectly or directly promotes the comprehensive upgrading and transformation of the Chinese electric motor market, Continuously driving the growth of the motor market.

National level policies:

       1、 In March 2023, the National Development and Reform Commission and the Administration for Market Regulation jointly issued a notice on further strengthening the upgrading and application of energy-saving standards. The notice proposed to accelerate the revision of mandatory energy consumption quota standards in industries such as petrochemicals, chemical engineering, steel, non-ferrous metals, building materials, and machinery in the industrial sector, and to improve the mandatory energy efficiency standards of key energy consuming products and equipment such as motors, fans, pumps, compressors, welding machines, and industrial boilers, striving to achieve international advanced standard indicators.

       2、 In March 2023, the National Development and Reform Commission, in collaboration with six departments including the Ministry of Industry and Information Technology, issued the Guiding Opinions on Coordinating Energy Conservation, Carbon Reduction, and Recycling to Accelerate the Updating and Renovation of Key Field Products and Equipment. The opinions proposed that by 2025, the proportion of high-efficiency and energy-saving motors with energy efficiency reaching the energy-saving level (energy efficiency level 2) or above would increase by more than 5% compared to 2021, and the proportion of newly added high-efficiency and energy-saving motors would increase by 15% that year. The research and development level of advanced energy-saving and carbon reducing technologies in the motor industry and the supply capacity of efficient and energy-saving motors have been effectively improved, and the recycling and utilization system of waste motors has become more perfect

       In the future, under the guidance of relevant national policies, the main downstream application areas of China's motor market will maintain stable growth. Petrochemical and industrial machinery will continue to maintain stable growth under the guidance of national policies. In addition, under the guidance of the "Dual Carbon Goals", petrochemical and industrial machinery advocate green development (energy conservation, efficiency, and emission reduction). The upgrading of motor energy efficiency will become a key link in various fields to help achieve the "Dual Carbon" Goals, So the two major fields are still important sectors driving demand in the motor industry. In other traditional fields, the demand for electricity will further increase under the promotion of new energy vehicles and other industries. Water conservancy and rail transit have set clear planning goals, and market growth is objective. Therefore, electricity, water conservancy, and rail transit are still the traditional areas that the motor market focuses on. New energy vehicles, industrial robots, and wind power (guided by the dual carbon goals) have promising industry development prospects under the support and guidance of national policies. Emerging industries are also key areas of focus for the motor market (especially servo motors) in the future. In this environment, it is expected that the overall annual growth rate of the Chinese motor market will remain at 3% to 4% from 2024 to 2025.