Two kinds of alloy materials which own the different copper contents are studied in this paper. After heating treatment, quenching and tempering, the mechanical properties and electromagnetic properties of two materials are tested by experimental equipment. Based on electromagnetic field theory, two-dimensional mathematical and physical models of induction motor with compound cage rotor are established. The finite element method for solving sine variation field is given using the software ANSYS. The starting performance and operating performance are used in the rotor bar. The influence of copper content change in alloy material on performance of induction motor with compound cage rotor is analysed. The results show that starting performance is better when Fe–20%Cu alloy is used in the rotor bar and operating performance is better when Fe–16%Cu alloy is used in the rotor bar. Its validity was verified by measurements.