Motor Industry Experiences Wave of Collective Price Adjustments, Rising Raw Material Costs Identified as Primary Cause

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  • Release time: 2025-12-24

Since December 2025, China's motor market has experienced a broad wave of price increases. Companies such as Shanxi Electric Machine Manufacturing Co., Ltd. explicitly stated in their adjustment notices that due to the continuous rise in electrolytic copper market prices, they decided to uniformly increase the sales price of electric motors by 10% on the existing basis. Henan Yutong Electric Machine Co., Ltd. also issued a pre-price increase notice, pointing out that due to a significant increase in copper prices, the comprehensive production cost of motors has surged, and domestic and international peers have simultaneously adjusted prices by 10%-15%. Shanghai Electric's price adjustment notice mentioned deeper industry issues beyond cost pressure: the spread of "vicious, low-price competition" leading to watered-down product quality, declining service standards, and weakened capacity for continuous innovation and risk resilience. To respond to announcements from the National Development and Reform Commission and the State Administration for Market Regulation regarding managing disorderly price competition, Shanghai Electric increased prices for its full range of low-voltage motor products by 10-15%. This price adjustment wave affects large, medium, and small motor enterprises, from large state-owned enterprises to private companies. Industry experts note that this collective adjustment reflects common challenges: intense cost control pressure from volatile raw material prices and price wars in the low-end market that hinder technological innovation and quality improvement. This round of adjustments may accelerate industry consolidation, pushing companies towards high-value-added, differentiated products .

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