A new kind of alloy (conductor for electric and magnetic), is proposed in this paper, which applied in induction motor rotor bars, and a kind of induction motor with compound cage rotor(IMCCR) is obtained. By using the electromagnetic-thermal coupling analysis method, the transient temperature field of an IMCCR is numerically analyzed, and the transient thermal process of motor operating with blocked rotor for 10s and then stopped for 10min natural cooling is calculated. The heat diffusion of stator equivalent windings and the double-directions heat transmission processes in stator are analyzed. Based on which, the influences of rotor material permeability and conductivity on motor performance are studied. Comparing with the normal nonmagnetic material, the alloy could improve motor performance significantly while ensure motor thermal performance, which indicates the wide application of such alloy in electrical machines.