Motor Industry Value Chain Analysis
Release date:
2025-07-22
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Abstract
From the perspective of procurement practices, motor companies typically determine qualified suppliers and purchase prices through methods such as bidding, quality and price comparisons, price analysis, and supplier qualification assessments. They generally choose to establish long-term partnerships with suppliers that have strong reputations and competitive advantages. In terms of production models, motor companies usually adopt a "sales-driven production" approach, organizing their manufacturing activities based on customer demand and producing multiple product variants in bulk according to specific orders. As for sales strategies, motor products are predominantly customized, with low standardization levels. Therefore, motor companies often employ a stationed sales model, focusing primarily on direct sales through regional offices while complementing this with distribution channels managed by authorized agents.
1) The Relevance and Impact of Upstream Industries
Fluctuations in raw material prices within upstream industries significantly influence motor companies' product pricing strategies, cost levels, and sales performance—demonstrating a high degree of correlation. Currently, the primary raw materials for motor products include electrolytic copper, silicon steel, and carbon structural steel. These industries boast mature technological processes, robust market competition, and ample product supply, effectively meeting the production and operational needs of the motor industry while providing critical support for its sustainable development.
2) The Relevance and Impact on Downstream Industries
Motor products are widely used across various sectors of the national economy, particularly large and medium-sized motors, which find extensive applications in industries such as metallurgy, water conservancy, petrochemicals, building materials, and wind power. The rapid growth of these related industries has created vast market opportunities for the motor sector, fostering the orderly development of the entire motor industry.
Motor manufacturing companies can either produce wind power equipment in-house or supply it as a complementary product to other enterprises. Meanwhile, China's wind energy industry is poised for tremendous market growth: First, our country boasts vast reserves of wind energy; second, as a clean and sustainable energy source, wind power is increasingly gaining global attention. In response, China has been vigorously supporting the renewable energy sector, with wind power emerging as one of its key priorities. As Chinese companies continue to master, adopt, and independently develop cutting-edge wind power technologies, the wind turbine manufacturing industry is sure to achieve robust and rapid growth. Moreover, the expansion of the wind energy sector is also paving the way for new avenues of development within the motor manufacturing industry.
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