MG Motor will debut in India next year with a Morris Garages SUV priced around Rs 15 lakh. The company, a wholly owned subsidiary of the USD 118-billion Chinese giant SAIC, aims to launch a product every year.The company’s plan to kickstart with an SUV is a deviation from its strategy in other Asian markets such as Thailand, where it debuted in 2014 with a mid-sized sedan. Sources who did not want to be named said the SUV, which is in the works, would be around 4.5 metres long – bigger than the Hyundai Creta and the Jeep Compass – and feature an “Internet car technology” jointly developed with Alibaba.SAIC has two key strengths that will help it offer high value for Rs 15 lakh. The company has a proven track record in building a supply-chain ecosystem, with over USD 23 billion coming from auto parts sales annually. In tune with that, it has started building a vendor park near its plant in Halol, Gujarat. Second, the company won’t have to pay royalty costs. Product development will be largely handled at the parent level.Domestic sales data for the past one year available from industry and company database Ace Equity points to a higher market fragmentation in the Rs 12 lakh-Rs 15 lakh market. This category includes sedans like Honda’s City, Hyundai’s Verna, and utility vehicles like the Creta and the Compass.Considering that the Compass, priced Rs 15.16 lakh, has been selling 2,000-plus units a month over the past eight months, MG Motors’ annual production capacity of 80,000 in the first phase seems adequate.MG Motors said it might bring products from the parent’s other brands as well, including Roewe. The Roewe RX5 has been one of the most successful SUV launches in China, with monthly sales above 20,000. The company said its second product – a sedan or a compact SUV – expected to be launched in 2020, would be further engineered for Indian conditions.SAIC, which manufactures in India, Indonesia, and Thailand, recorded overseas sales of 170,000 units in 2017. However, product reviews in the UK, its home market, suggest that it needs to get better in powertrain refinement. While the interiors of its vehicles mostly get a thumbs up, external styling is not distinctive.In India, SAIC is not expected to make much of a dent in market share in the medium term. However, an interesting aspect to look forward to would be the consumers’ reaction to the Internet car technology.