Why does power factor lower as motor load is reduced?

The reactive power is determined by the magnetizing current required to operate the
device.  This is non-working power.  The magnetizing current is essentially constant,
regardless of load placed on the motor.

The real power is the wattage used to drive the load on the motor.  Because the voltage
to the motor is essentially constant, regardless of load, a change in load requires a
change in (non-reactive) current.  Less load means less current.

When the load is highest, then the real power is highest, and the ratio of real power to
reactive power is highest.  As the load is diminished, the real power declines, and the
ratio of real power to (essentially fixed) reactive power also declines.

In other words, the longer (real power) leg of the power triangle gets shorter, as the
load is diminished.  But the shorter (reactive power) leg is substantially unchanged. 
Hence, the phase angle changes.  The phase angle becomes larger as the load declines,
so the power factor of course declines also.

Draw yourself a picture of the power triangle at high load (which will have a small phase
angle) and a picture of the power triangle and low load (which will have a larger phase
angle).

Typically, a three-phase synchronous motor will have a full-load power factor of about
0.8 to 0.9, depending on horsepower (for motors from 1 hp up to, say, 300 hp).   At half
load, those motors will have a power factor from, say, 0.72 to 0.81.  It's all because the
reactive power is essentially fixed, while the real power declined by one-half.

(Kent Aldershof, Some academic credentials, and lots of stripes from The School of Hard
Knocks.)

Reference: https://www.quora.com/Why-does-power-factor-lower-as-motor-load-is-reduced