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This paper presents a successful design of a large capacity line-start permanent-magnet motor (LSPM), which is developed for industrial fans, pumps and compressors to reduce the energy consumption. It keeps the configuration of induction motors of the same capacity as much as possible due to the limitations of cost and manufacture process. In order to assess the starting capability, two-dimensional dynamic finite element model is employed to analyze the transient performance of both the LSPM and the induction motor of the same capacity. The model is proven to be correct as the predicted result of the induction motor is validated experimentally. By comparing the performance of these two motors, it is shown that the proposed LSPM exhibits higher power factor and efficiency.